The Review of Economics and Statistics Vol. 94 No. 3 2012
Minimum Wages and Alcohol-Related Traffic Fatalities among Teens
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.
- DOI
- 10.1162/rest_a_00199
- Volume
- 94
- Issue
- 3
- Pages
- 828-840
- Language
- en
- Sources
- openalex crossref