work, curse of the drinking class

Doug Henwood dhenwood at panix.com
Thu Feb 28 12:29:28 PST 2002


"Employment, Wages, and Alcohol Consumption in Russia: Evidence

from Panel Data"

BY: ERDAL TEKIN

Georgia State University

Department of Economics

Institute for the Study of Labor (IZA)

Document: Available from the SSRN Electronic Paper Collection:

http://papers.ssrn.com/paper.taf?abstract_id=300649

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Paper ID: IZA Discussion Paper No. 432

Date: February 2002

Contact: ERDAL TEKIN

Email: Mailto:tekin at gsu.edu

Postal: Georgia State University

Department of Economics

Andrew Young School of Policy Studies

University Plaza

Atlanta, GA 30303 USA

Phone: (404) 651-3968

Fax: (404) 651-4985

Paper Requests:

Contact: Mark Fallak, Institute for the Study of Labor (IZA),

P.O. Box 7240, D-53072 Bonn, Germany. Phone:+49-228-3894-0 ext.

223. Fax:+ 49-228-3894-510. Mailto:Fallak at iza.org

ABSTRACT:

This paper examines the effects of alcohol consumption on

employment and wages for males and females in Russia. Both cross

sectional and fixed-effects models are estimated utilizing data

from the Russia Longitudinal Monitoring Survey. The results from

the models that do not control for unobserved heterogeneity

indicate that alcohol consumption has a positive impact on

employment and wages. Further, there is some evidence in favor

of an inverse U-shaped relationship between alcohol consumption

and the labor market outcomes. Once the unobserved heterogeneity

is controlled for using fixed effects, the positive association

diminishes for the employment models for males and females. For

the wage models, controlling for unobserved heterogeneity

strengthens the positive impact of alcohol consumption both in

significance and magnitude for males, while the reverse is true

for females. However, the inverse U-shaped relationship obtained

in cross-sectional models no longer exists. The results

underline that unobserved heterogeneity plays an important role

on the relationship between alcohol consumption and labor market

behavior for both males and females. The findings are robust to

model specifications and various alcohol consumption measures.

Keywords: Employment, Wages, Alcohol Consumption, Russia



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