Arbeitspapier

Cross-border health and productivity effects of alcohol policies

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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 6389

Classification
Wirtschaft
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects
Health: Government Policy; Regulation; Public Health
Subject
cross-border shopping
alcohol taxes
health effects of alcohol
Alkoholsteuer
Steuerwirkung
Grenzgebiet
Gesundheit
Fehlzeit
Finnland
Schweden

Event
Geistige Schöpfung
(who)
Johansson, Per
Pekkarinen, Tuomas
Verho, Jouko
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2012

Handle
URN
urn:nbn:de:101:1-201206146652
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Johansson, Per
  • Pekkarinen, Tuomas
  • Verho, Jouko
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2012

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