Alcohol Consumption and Wages

Student: Nevzgoda Anastasia

Educational Programme: Joint HSE-NES Undergraduate Program in Economics (Bachelor)

Year of Graduation: 2019

This work based on data form Russian Longitudinal Monitoring Survey studies labor market outcomes effects of alcohol use. An inverse U-shaped relationship between wage and consumption frequency is found with weekly consumption being associated with a 7% higher hourly rate for men. Data on personality traits as a possible source of bias in results is included into analysis but results hold. Mechanism underneath the relationship between alcohol use and wage is also investigated with the main finding being that health is rather not the key channel through which alcohol affects human capital and resulting wage rate.

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