Alcoholism, Work, and Income Over the Life Cycle

We find that alcoholism decreases labor force participation among prime age males, and therefore decreases the income of this group. The effects of alcoholism on the labor force participation of younger and older males and on the wage rates of prime age males are not significantly positive. We also find that alcoholism affects income indirectly through its effects on individual characteristics such as schooling and marital status, as well as directly through labor force participation rates after controlling for these indirect effects.