Alcohol, Unemployment Rates, and Advertising Bans: International Panel Evidence, 1975-2000

Journal of Public Affairs, Vol. 10, p. 348, February 2010

26 Pages Posted: 10 Jul 2010

See all articles by Jon P. Nelson

Jon P. Nelson

Pennsylvania State University - College of the Liberal Arts - Department of Economic

Date Written: June 10, 2009

Abstract

This paper presents empirical evidence on the relationship between alcohol consumption and unemployment for an international panel of countries in the Organization for Economic Cooperation and Development (OECD). I find a significant negative or pro-cyclical relationship between unemployment and alcohol consumption, which agrees closely with prior estimates for the United States. This finding indicates that economic factors tend to dominate possible stress-induced changes in alcohol use. Model specifications control for non-stationary panel data and for a variety of other economic and cultural factors, including prices, income, wine sentiment, tourism, population aging, and restrictive policies pertaining to alcohol use and marketing. The effects of advertising bans are statistically insignificant or have contrary coefficient signs, while a composite index for other alcohol control policies is negative.

Keywords: Alcohol, Unemployment, Advertising Bans, Panel Data

JEL Classification: I12, M37, C23

Suggested Citation

Nelson, Jon P., Alcohol, Unemployment Rates, and Advertising Bans: International Panel Evidence, 1975-2000 (June 10, 2009). Journal of Public Affairs, Vol. 10, p. 348, February 2010, Available at SSRN: https://ssrn.com/abstract=1638354

Jon P. Nelson (Contact Author)

Pennsylvania State University - College of the Liberal Arts - Department of Economic ( email )

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HOME PAGE: http://econ.la.psu.edu/people/jpn

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