Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2012:10: Cross-border health and productivity effects of alcohol policies

Per Johansson (), Tuomas Pekkarinen and Jouko Verho
Additional contact information
Per Johansson: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: P O Box 513, SE-751 20 Uppsala, Sweden
Tuomas Pekkarinen: Aalto University School of Economics, Postal: Finland
Jouko Verho: The Social Insurance Institution of Finland, Postal: Finland

Abstract: This paper studies the cross-border health and productivity effects of alcohol taxes. We estimate the effect of a large cut in the Finnish alcohol tax on mortality, alcohol related illnesses and work absenteeism in Sweden. This tax cut led to large differences in the prices of alcoholic beverages between these two countries and to a considerable increase in cross-border shopping. The effect is identified using differences-in-differences strategy where changes in these outcomes in regions near the Finnish border are compared to changes in other parts of northern Sweden. We use register data where micro level data on deaths, hospitalisations and absenteeism is merged to population-wide micro data on demographics and labour market outcomes. Our results on the effect of the Finnish tax cut on mortality and alcohol-related hospitalisations in Sweden are very imprecise. However,we find that workplace absenteeism increased by 5% for males and by 13% for females near the Finnish border as a result of the tax cut.

Keywords: Cross-border shopping; Alcohol taxes; Health effects of alcohol

JEL-codes: H23; H73; I18

27 pages, May 2, 2012

Full text files

wp-12-10-Cross-borde...alcohol-policies.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Ali Ghooloo ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-03-18 13:49:20.