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- Title
MINIMUM WAGES AND ALCOHOL-RELATED TRAFFIC FATALITIES AMONG TEENS.
- Authors
Adams, Scott; Blackburn, McKinley L.; Cotti, Chad D.
- Abstract
Using cross-state variation in minimum wages, we observe a positive relationship between the minimum wage and the number of alcohol-related accidents involving teen drivers. A similar effect is not observed when examining accidents among adults. The results are consistent with a positive income elasticity for alcoholic beverages and driving activities among young people, in particular for consumption out of discretionary income accorded by higher minimum wages. Evidence of a sizable impact of beer taxes on alcohol-related accidents among youths suggests that beer taxes are one avenue for policymakers to consider in counteracting this unintended consequence of minimum wages.
- Subjects
MINIMUM wage; TRAFFIC accident risk factors; DRINKING &; traffic accidents; UNDERAGE drinking; DISCRETIONARY income; BEER tax; CONSUMPTION (Economics); POLICY sciences
- Publication
Review of Economics & Statistics, 2012, Vol 94, Issue 3, p828
- ISSN
0034-6535
- Publication type
Article
- DOI
10.1162/REST_a_00199