The Impact of Alcohol Consumption and Marijuana Use on High School Graduation

33 Pages Posted: 1 Jul 2000 Last revised: 17 Apr 2022

See all articles by Tetsuji Yamada

Tetsuji Yamada

Rutgers University, Camden, Camden College of Arts and Sciences, Department of Economics; NBER

Michael Kendix

Rutgers University, Camden, Camden College of Arts and Sciences, Department of Economics

Tadashi Yamada

University of Tsukuba - Institute of Socio-Economic Planning; NBER

Date Written: October 1993

Abstract

In this study we use data from the National Longitudinal Survey of Youth (NLSY). We estimate the relationship between high school graduation, and alcohol and marijuana use among the sample of high school students. We also estimate these students' demand determinants for each of these substances. Our results show that there are significant adverse effects of alcohol and marijuana use on high school graduation. In addition, we find that beer taxes, minimum drinking age laws and marijuana decriminalization have a significant impact on the demand for these substances. Our findings have important policy implications. We find that a ten percent increase in beer tax, reduces alcohol consumption among high school students, which in turn raises the probability of high school graduation by about 3.7 percent. Further, a ten percent increase in liquor prices, raises the probability of high school graduation by 6.6 to 8.2 percent. Raising the minimum drinking age for liquor also reduces liquor and wine consumption, and consequently, improves the probability of high school graduation.

Suggested Citation

Yamada, Tetsuji and Kendix, Michael and Yamada, Tadashi, The Impact of Alcohol Consumption and Marijuana Use on High School Graduation (October 1993). NBER Working Paper No. w4497, Available at SSRN: https://ssrn.com/abstract=227326

Tetsuji Yamada (Contact Author)

Rutgers University, Camden, Camden College of Arts and Sciences, Department of Economics ( email )

Department of Economics
Camden, NJ 08102
United States

NBER

365 Fifth Avenue, 5th Floor
New York, NY 10016-4309
United States

Michael Kendix

Rutgers University, Camden, Camden College of Arts and Sciences, Department of Economics

Department of Economics
Camden, NJ 08102
United States

Tadashi Yamada

University of Tsukuba - Institute of Socio-Economic Planning ( email )

Tennodai 1-1-1
Tsukuba Ibaraki-ken 305
Japan

NBER

365 Fifth Avenue, 5th Floor
New York, NY 10016-4309
United States

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