Alcohol Consumption and Long-Term Labor Market Outcomes

What is it about?

We examine whether alcohol consumption is related to long-term labor market outcomes. The results show that former drinkers and heavy drinkers both have almost 20% lower earnings compared to moderate drinkers. On average, former drinkers work annually c. 1 month less over the 20-year observation period.

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Why is it important?

Alcohol misuse causes considerable health-related and other costs to the society. How alcohol consumption is related to individuals’ labor market attachment is a highly policy-relevant question. Being employed is, for example, an important determinant of a person’s social status, having spillover effects on all aspects of wellbeing.