MINIMUM WAGES AND ALCOHOL-RELATED TRAFFIC FATALITIES AMONG TEENS

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 elas...

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Bibliographic Details
Published in:The review of economics and statistics 2012-08, Vol.94 (3), p.828-840
Main Authors: Adams, Scott, Blackburn, McKinley L., Cotti, Chad D.
Format: Article
Language:English
Subjects:
Accident rates
Accidents
Adolescents
Age groups
Alcohol
Alcohol drinking
Alcoholic beverages
Beers
Correlation analysis
Death
Drink-driving
Drunk driving
Estimated taxes
Experimental methods
Income elasticity
Low income
Minimum wage
Population estimates
Road accidents
Studies
Teenagers
Traffic accidents & safety
Traffic estimation
U.S.A
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Summary: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.
ISSN:0034-6535
1530-9142
DOI:10.1162/REST_a_00199