Abstract
This research is the first to uncover evidence of an intergenerational effect of education on substance use in the United States. Using data from the NLSY79 and variation in education induced by changes in compulsory schooling laws, we study the effect of parental education on children's use of drugs and alcohol. We find that an increase in parental education decreases alcohol consumption – binge drinking, in particular – and has no effect on marijuana consumption among youth. Given the high social costs associated with alcohol abuse, we conclude that previous research on education may appreciably underestimate the benefits of investments in education.
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