The Effect of Youth Alcohol Initiation on High School Completion

16 Pages Posted: 5 Jun 2006

See all articles by Steven F. Koch

Steven F. Koch

University of Pretoria

Kerry Anne McGeary

Ball State University - Department of Economics

Abstract

The social environment inherent in schools impacts both alcohol consumption onset and high school completion. The results reported here, based on data from the 1979-96 NLSY panels, show that the social coincidences between alcohol consumption and education are important determinants of both education completion and alcohol onset. Ignoring the social nature of these simultaneous decisions underestimates the impact of alcohol onset on education. After correcting for the presence of an endogenous positive relationship between schooling and alcohol consumption, we find that alcohol initiation before age 14 significantly reduces the probability of timeously completing high school by between 7% and 22%. (JEL I18, I21)

Suggested Citation

Koch, Steven F. and McGeary, Kerry Anne, The Effect of Youth Alcohol Initiation on High School Completion. Economic Inquiry, Vol. 43, Issue 4, pp. 750-765, 2005, Available at SSRN: https://ssrn.com/abstract=906348

Steven F. Koch (Contact Author)

University of Pretoria ( email )

Physical Address Economic and Management Sciences
Pretoria, Gauteng 0002
South Africa
27-12-420-3468 (Phone)

Kerry Anne McGeary

Ball State University - Department of Economics ( email )

2000 W. University Ave.
Muncie, IN 47306-0340
United States
765-285-5378 (Phone)

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