The developmental effect of state alcohol prohibitions at the turn of the twentieth century.
Evans, Mary F. ; Helland, Eric ; Klick, Jonathan 等
The developmental effect of state alcohol prohibitions at the turn of the twentieth century.
"John P. Lennon, treasurer of the American Federation of
Labor, says that seventy percent of the drink bill of the United States
is contributed by the American laboring man ... This means that ...
liquor money is usually bread money, meat money, shoe money, and money
that ought to go for clothing."
American Issue, Maryland Edition, June 12, 1909 as cited in Odegard
(1928)
I. INTRODUCTION
Work by economists provides considerable evidence consistent with
the fetal origins hypothesis--that various chronic health outcomes are
prompted by an adverse in utero environment (e.g., Banerjee et al. 2010;
Deschenes et al. 2009). (1) While the outcomes and conditions vary
across studies, the underlying findings emphasize the risks associated
with negative exposures during this critical development period. Most
studies in the fetal origins literature exploit the variation afforded
by temporary adverse in utero shocks (e.g., famines) and focus on early
life outcomes (e.g., low birth weight). However, recent research in this
area examines the effects in adulthood of positive in utero and
childhood exposures. For example, Hoynes, Schanzenbach, and Almond
(2012) find that the beneficial effects of food stamp access in utero
and during childhood persist into adulthood, suggesting the potential
for positive and sustained environmental changes during gestation and in
early childhood to have long-lasting impacts. (2) Results from Bleakley
(2007) suggest higher adult incomes among cohorts in the American South
with more childhood exposure to hookworm eradication efforts. (3)
We contribute to this growing literature by exploiting the
quasi-randomization of alcohol consumption created by state-level
alcohol prohibition laws passed in the United States in the early part
of the twentieth century. We argue that such laws represented a positive
shock to individuals who were in utero or who were young children around
the times of the laws' adoption. Using a large dataset of World War
II enlistees, we examine the long-term effects of these state
prohibition laws on adult educational attainment, obesity, and height.
Although we do not observe alcohol consumption and hence our results
provide intent-to-treat estimates, our design avoids the reporting
problems associated with using more recent data on alcohol use. We find
small but statistically significant effects, which do not appear to be
the result of pre-existing trends, for two of the three outcome
variables.
II. BACKGROUND
Reduced consumption of alcohol could lead to improved outcomes for
those individuals in utero or in early childhood during this period
through two channels. First, reduced alcohol consumption by the
household members who likely consumed the most alcohol during this
period, namely men, may have shifted resources to other members of the
household, namely women and children. Second, reduced consumption by
pregnant women themselves would reduce fetal exposure to alcohol. We
provide some historical evidence on the potential relevance of these
mechanisms in the context of state-level alcohol prohibitions.
A. Intrahousehold Shift in Resources to Women and Young Children
Liquor traffic as the "enemy of the home" was a favorite
theme of the Anti-Saloon League and other temperance organizations of
the time (Odegard, 1928, 42). (4) The suggestive titles of pamphlets
distributed by such organizations included Better Babies, Unborn
Children, Why Babies Die, and Boys Worth More Than Taxes. The obvious
intention of such propaganda was to convey the message that the saloon
culture, and the alcohol consumption that came with it, resulted in
adverse outcomes for children and families that would be reversed under
prohibition. Determining whether or not this reversal materialized is
difficult given the lack of historical consumption data; state-level
data on alcohol consumption are not available for this period. However,
national data on consumption and other measures that are likely to be
associated with consumption provide some evidence to suggest lower
alcohol consumption in the period during which many states adopted
alcohol prohibition laws. (5) In addition, an analysis of alcohol
consumption during the period surrounding federal prohibition suggests a
sharp reduction in alcohol consumption at the onset of prohibition,
which rebounded to 60%-70% of its preprohibition level within several
years (Miron and Zwiebel 1991).
If men, likely the heaviest consumers of alcohol during this time
period, reduced their consumption in response to the state prohibitions,
then this may have altered the intrahousehold distribution in ways that
shifted resources toward pregnant women and young children. (6) The few
studies that examine the long-term effects of changes in economic
resources early in life suggest the potential for such shocks to impact
height, obesity, and educational attainment, the three outcomes on which
we focus in our estimation. Banerjee et al. (2010) exploit regional
variation in the timing of a nineteenth-century blight of French
vineyards that resulted in a large negative income shock to households
in affected regions. Their results suggest that this resulted in shorter
heights in adulthood.
Hoynes et al. (2012) document a significant reduction in the
incidence of metabolic syndrome (i.e., obesity, high blood pressure, and
diabetes) among individuals with access to food stamps in childhood.
This finding is consistent with the Barker hypothesis, in which an
adverse pre- and early postnatal environment programs the body, through
metabolic adaptations, to survive under scarcity (Barker 1990; Gluckman
and Hanson 2004). In the event such conditions do not arise (i.e., the
nutritional environment improves with age), these adaptations increase
the risk of developing a metabolic disorder as an adult. (7) Hoynes et
al. (2012) also find increases in educational attainment from childhood
access to food stamps among women in their sample, findings consistent
with a reduction in the anemia and listlessness that may occur in
severely undernourished children. Together, the anecdotal historical
record and recent empirical evidence provide a potential channel, an
intrahousehold shift of resources, through which state prohibitions may
result in higher educational attainment, reduced incidence of obesity,
and increased height among those with early life exposure.
B. Reduced In Utero Exposure to Alcohol
Consistent with fostering a healthy in utero environment, medical
professionals have discouraged alcohol consumption in pregnant women for
decades. The U.S. Centers for Disease Control (CDC) urges pregnant women
not to drink any amount of alcohol at any time during pregnancy. The
primary basis for this recommendation stems from studies that document
associations between fetal alcohol exposure and memory limitations, a
lack of coordination, learning disabilities, impaired reasoning and
judgment skills, language delays, hyperactivity disorder, as well as a
host of physical issues. (8) The diagnostic criteria for fetal alcohol
syndrome (FAS), the most severe consequence of fetal alcohol exposure,
include growth problems, specifically, prenatal height or weight or
postnatal height or weight measured at any one point in time putting the
individual at or below the 10th percentile for the person's age,
sex, and race. (9) Since 2003, fetal alcohol spectrum disorder (FASD)
has been used as an umbrella term describing the full range of adverse
effects that can occur in an individual whose mother consumed alcohol
during pregnancy. FASD may include "physical, mental, behavioral,
and/or learning disabilities with possible lifelong implications"
(Bertrand et al., 2004, 4).
A childhood height deficit is among the criteria for diagnosing
FAS. Additionally, economic research proposes the use of height as a
marker of early life health (Case and Paxson 2008, 2010) and documents
associations between adult height and a range of nonhealth outcomes
(e.g., earnings, cognitive ability, employment), including educational
attainment. While childhood weight deficits are also among the FAS
diagnostic criteria, Klug et al. (2003) suggest that height deficits
from FAS persist into adulthood while those in weight begin to dissipate
in childhood. Thus, to the extent that we estimate significant effects
of prohibition on adult obesity, our findings underscore the importance
of the first causal mechanism, an intrahousehold shift of resources.
There is now general consensus among public health professionals
that fetal alcohol exposure is a causal factor in these various adverse
outcomes. However, this knowledge is a modern finding, which postdates
the period of analysis for our study. (10) Thus, in order to establish a
potential causal role for reduced in utero exposure to alcohol as a
result of state prohibitions, we must establish that women at the end of
the nineteenth century and turn of the twentieth century consumed
alcohol and therefore may have been less likely to do so as a result of
state alcohol prohibitions. Historical sources characterize the degree
of alcohol abuse by women of the period. For example, Murdock (1998)
indicates that about 15% of patients admitted for treatment at inebriate
homes and hospitals were women.
Characterizing women's temperate drinking during this period
is more difficult. Murdock (1998) explains the challenge as follows:
"The dearth of primary sources on women's moderate drinking
has led to the widespread conclusion that nineteenth-century women, or
at least middle-class women, did not drink" (p. 51). However,
available alternative sources do indicate moderate alcohol consumption
by many women of the period. In contrast to consumption by men during
this period, which often occurred in public saloons, sources such as
cookbooks and etiquette books suggest that consumption by women was more
likely to occur in the home (Murdock 1998). While consuming alcohol at
public saloons by women was uncommon (but not unheard of), many saloons,
especially those in urban areas, sold alcohol to women for consumption
off-site. Murdock (1998) describes the common practice of "rushing
the growler," filling buckets of beer at the saloons for
consumption at home. Murdock also notes that brewers' advertisement
campaigns during the period promoted beer's "sterility and
nutritional value, a reasonable claim in light of the poor quality of
urban milk and water" (p. 54). Alcohol for medicinal purposes was
"highly popular and easy to acquire" (Murdock 1998, 52).
Physicians treated pain associated with menstruation, pregnancy,
childbirth, among other conditions with alcohol. These historical
references provide evidence of both alcohol abuse and moderate alcohol
consumption by women in the late 1800s and early 1900s, and thus support
a potential underlying mechanism by which state prohibition laws may
have reduced the incidence of fetal alcohol exposure and its attendant
adverse effects.
III. RESEARCH DESIGN AND DATA
Our research design exploits the differential timing of state-level
alcohol prohibition laws adopted in the early 1900s to examine average
within-cohort effects of alcohol restrictions on health and nonhealth
endpoints among a sample of individuals who were in utero or were young
children during this period. Compared to the federal prohibition that
was in place between 1920 and 1933, state-level alcohol prohibition laws
provide us with more variation in presumed access to alcohol. However,
as Dills and Miron (2004) note, prohibition laws varied across states
with some states adopting various exemptions (e.g., for home
manufacture, importation for personal consumption) and others adopting
more restrictive rules (e.g., bone dry prohibition). Dills and Miron
(2004) and Owens (2011) provide more detailed discussions of the
heterogeneity in state laws. We follow the convention adopted by Dills
and Miron and refer to state laws restricting access to alcohol as state
"prohibition" laws; in contrast, Owens refers to these same
laws as state "temperance" laws. Figure 1 illustrates adoption
years for most states that passed state-level alcohol prohibition laws
after 1900 (Dills and Miron 2004). (11) The distribution of states that
adopted state-level alcohol prohibitions was not random.
Relative to nonadopting states, adopting states were less
industrial, less populated, and more likely to be located in the south
or west (Dills and Miron 2004; Lewis 2008). As discussed in more detail
below, this is not problematic for our research design as we restrict
attention to adopting states and exploit differences in the timing of
the state-level prohibitions.
Our identification strategy faces two primary challenges. (12)
First, the validity of our design is compromised if the timing of state
prohibition laws reflects pre-existing trends in state-level
characteristics that may be related to our outcome variables. Our
identification strategy addresses this in two ways. First, as in Bailey
(2006), we include in our specifications state linear time trends to
capture gradually changing unobserved state of birth characteristics.
Second, we follow Acemoglu et al. (2004) and Hoynes and Schanzenbach
(2009) and include in our specifications interactions between
preadoption state characteristics and a linear time trend.
In order to identify the appropriate preadoption state
characteristics for inclusion in our model, we use data from the 1900
Public Use Microsample (PUMS) and the 1901 Statistical Abstract of the
United States. For each state listed in Figure 1, we create a "time
to adoption" variable that indicates the number of years that
elapsed between 1904 and the adoption year. We regress our time to
adoption variable individually on various state-level characteristics.
(13) Table 1 reports the results of these regressions. The results
identify three state characteristics that significantly delayed
implementation of statewide alcohol prohibition; states with a smaller
percentage of the population living on a farm, black, and native born
were slower to adopt state prohibitions. Even in these three models, the
predictive power of the observables is low (i.e., the range of [R.sup.2]
values is .19-.21), which suggests that much of the variation in
adoption years is likely idiosyncratic. Our models include interactions
between four preadoption state characteristics (% population living on a
farm, native bom, and black; South) and time trends to control for
observable differences in state trends that may be spuriously correlated
with adoption. We include an interaction with South because the variable
was marginally significant in a multivariate time to adoption
regression.
Second, an obvious difficulty in using historical state prohibition
laws is finding individual-level outcome data to exploit the variation,
given how far in the past these changes occurred. Our analysis relies on
the Electronic Army Serial Merged File (EASMF), a dataset of World War
II enlistment records that have recently been digitized and made
available through the National Archives and Records Administration
(NARA). (14) The full dataset includes information for the majority of
individuals who enlisted in the U. S. Army during World War II,
comprising information for over nine million individuals. (15) The EASMF
sample is representative of men who served but not necessarily of the
U.S. population of draft-age men due to various service criteria
(Acemoglu et al., 2004; Bleakley et al. 2014; Goldin and Olivetti 2013).
The data contain limited control variables. However, importantly
for our study, the data include the individual's birth year, state
of birth, race, enlistment year, and educational attainment, as well as
the individual's height and weight for those who enlisted prior to
1943 (Hull 2006). (16) We use the height and weight information to
calculate body mass index (BMI) and classify those men with BMIs greater
than or equal to 30 as obese.
Like Bleakley et al. (2014), we implement a set of sample
restrictions to obtain samples that are more likely to be representative
by cohort. We construct two primary estimation samples, one for the
education outcome and another for the obesity and height outcomes. (17)
The first set of restrictions applies to both samples. First, we drop
duplicate observations from the raw data set as well as observations
with invalid values for enlistment year and missing values for birth
state. We also drop members of the Enlisted Reserve Corps due to the
potential for miscoding errors among these observations. (18) About 8.3
million observations survive this process. (19) Second, we restrict our
sample to white men. This excludes members of the Women's Army
Auxiliary Corps (WAAC) and non-white men. Members of the WAAC are a
self-selected sample of women and are therefore unlikely to be
representative of the general female population during the study period.
(20) Black men were much less likely to have served (Acemoglu, Autor,
and Lyle 2004; Goldin and Olivetti 2013). Third, we restrict the sample
to those men born between 1904 and 1923. (21) Fourth, we include only
those men who enlisted between the ages of 20 and 45, with the latter
restriction consistent with formal enlistment requirements. (22) Fifth,
we limit attention to individuals who were born in the states listed in
Figure 1, which accounts for almost half of this sample. Sixth, we
restrict the sample to draftees (i.e., "selectees") and
therefore exclude men who voluntarily enlisted. Relative to voluntary
enlistees, draftees are more likely to be representative of their
respective cohorts.
Finally, the samples include only those men born more recently than
10 years before the adoption of prohibition in their birth states, which
excludes from our analysis men who were first exposed after age 10. (23)
Of those observations that remain before imposing this restriction, less
than 3% were first exposed after age 10. These men are among the oldest
in the sample; the mean age among these men is 36 compared to 25 for
other men in the sample. As such they are likely to be systematically
different from other members of their cohorts.
The obesity/height sample reflects additional restrictions. Because
of the data limitation noted earlier, these samples include only those
men who enlisted between 1938 and 1942. Consistent with drafting
criteria, the obesity/height sample includes men with heights between 60
and 78 inches who weighed at least 105 pounds. Table 2 presents summary
statistics for the two samples. Because we observe educational
attainment for individuals regardless of their enlistment year, the
education sample includes almost a million more observations than the
obesity/ height sample. (24) Relative to the education sample, the
obesity/height sample is slightly younger with lower educational
attainment and less exposure to state alcohol prohibition. The
prevalence of obesity in our data is 2.25%, which is low relative to
contemporary comparisons but in line with other estimates of obesity
rates in the early 1900s. Helmchen and Henderson (2004) estimate the
prevalence of obesity at around 3.7% among a sample of non-Hispanic
white men between the ages of 40-49 years old in 1890-1894. To provide
some basic evidence of representativeness, we compare the educational
attainment for our samples to the U.S. population using census data.
According to the 1940 census, 38.9% of white males between the ages of
25 and 29 completed 4 years of high school or more. Among white male
draftees between the ages of 25 and 29 in our education (obesity/height)
sample, 39.54% (39.93%) completed at least 4 years of high school.
IV. ECONOMETRIC SPECIFICATION AND RESULTS
A. Event Study
Before proceeding to our primary specifications, we report the
results of an event study to provide some intuition and a graphical
depiction of our data. To do so, we create a variable
"years-from-dry," which indicates the number of years between
an individual's birth and the year in which his state adopted a
statewide alcohol prohibition provision. That is, for a particular
individual, years-from-dry is equal to the individual's birth year
minus the year in which his birth state adopted prohibition. This
variable will be negative (positive) for individuals born before (after)
their birth state adopted prohibition and zero for individuals born in
the year of adoption. Values of years-from-dry around one denote
individuals who were in utero during their birth state's adoption.
(25) We create a set of fixed effects, one for each value of
years-from-dry, and use these to explore the effects of state alcohol
prohibition flexibly. In contrast to a sharp research design, this
flexible design allows us to identify potentially different effects of
statewide prohibition adoption on individuals of different ages (e.g.,
in utero, in early childhood). However, an important weakness of this
design is its failure to account for pre-existing trends in state-level
characteristics that may be related to our outcome variables. For our
application, the event study design is not amenable to the
identification strategy we describe above, and therefore it should be
viewed with this limitation in mind.
For our event study analyses, we estimate equations of the general
form:
(1) [Y.sub.ibs] = [alpha] + [d'.sub.y][[beta].sub.y] +
[[eta].sub.s] + [bar.[omega]] + [[epsilon].sub.ibs],
where [Y.sub.ibs] denotes educational attainment, binary obesity
status, or ln(height) of individual i born in year b in state 5 and
[d.sub.y] denotes the set of years from dry fixed effects. State of
birth and cohort-by-age at enlistment fixed effects are denoted
[[eta].sub.s] and [[bar.[omega]].sub.c]. respectively. [[beta].sub.y]
denotes the coefficient vector of interest. Standard errors are
clustered on state and year of birth.
Figures 2-4 display the estimated coefficients and 95% confidence
intervals on the years-from-dry fixed effects from our event study
analysis. The reported coefficients are interpreted relative to the
excluded category of -10 (i.e., denoting men who were born 10 years
before their birth state adopted prohibition). The three figures
illustrate a similar pattern in that significant effects of exposure
generally occur around a years-from-dry value of zero, which indicates
those men born in the year of adoption. However, the estimated effects
of exposure are more pronounced for educational attainment and obesity
than for height. Figure 2 suggests significant positive effects of
exposure on educational attainment for years-from-dry values between -4
and 8 (i.e., men born between 4 years before and 8 years after their
birth states adopted prohibition). Figure 3 indicates negative and
significant effects of exposure on obesity for those born between about
4 years before and 4 years after their birth states adopted prohibition.
For extreme values of years-from-dry, the magnitudes of the
estimated coefficients become smaller and our estimates become noisier.
We offer two explanations for this result. First, individuals with high
values of years-from-dry are more likely to have been in utero or in
early childhood during World War I which may help to explain the shape
of the figures. Brown (2011) provides evidence of lower income, health,
and education of the parents of the 1919 birth cohort, relative to
surrounding cohorts and argues that U.S. involvement in World War I in
1918 explains this result. Individuals who were children during World
War I were affected in other ways (e.g., death or injuries of fathers,
changing role of mothers in household, more caregiving responsibilities
for younger siblings) that could contribute to our results. Second, due
to the composition of the data, high values of years-from-dry represent
significantly fewer states and fewer birth years than moderate values,
diminishing our ability to obtain precise estimates. While our event
study results are suggestive of significant effects of exposure to state
prohibitions at early ages, they do not allow us to rule out the
possibility that the observed effects are due merely to underlying
trends in our three outcome variables. Our main econometric
specifications address this issue using the identification strategy we
introduced above.
B. Primary Specifications
For our main analysis, we estimate models of the following general
form:
(2) [Y.sub.ibs] = [alpha] + [gamma][Pro.sub.bs] + [[eta].sub.s] +
[[lambda].sub.a] + [[bar.[omega]].sub.c] + [[eta].sub.s] x b +
[theta]S1900 x b + [[epsilon].sub.ibs],
where [Y.sub.ibs], [[eta].sub.s], [[lambda].sub.a], and
[[bar.[omega]].sub.c] are defined as in Equation (1). [Pro.sub.bs] is
the measure of exposure to state alcohol prohibition (i.e., the
treatment) in early life. The coefficient of interest is [gamma]. Linear
state of birth trends, [[eta].sub.s] x b, control for unobservable
state-specific trends. (26) The specifications also include interactions
between preadoption characteristics of the state of birth and linear
trends in year of birth (51900 x b). Standard errors are clustered on
state and year of birth.
Our various measures of exposure are in the spirit of Hoynes et al.
(2012) with some modifications to reflect our reliance on state and year
of birth variation for identification. Our exposure measures use
information on birth year and the year in which each state implemented
prohibition as we do not observe the specific date of birth or the exact
date on which prohibition took effect. Our main exposure measures, Exp8
and Exp 10, indicate the number of years of exposure to state alcohol
prohibition before ages 8 and 10, respectively. Summary statistics for
our exposure measures are given in Table 2.
Table 3 contains the results of estimating Equation (2) for the
three outcome variables, education, obese, and ln(height). (27) The
first columns of the table indicate significant education and obesity
effects of early exposure to state alcohol prohibition. We do not detect
significant treatment effects for height although the estimated impacts
are positive. For the education models, the estimated coefficient on
Exp8 suggests that an additional year of exposure to state alcohol
prohibition before age 8 increases educational attainment by about 0.04
years. (28) Because our estimates are intent-to-treat, an assessment of
the magnitude of this effect requires information on the exposed
population. Only those individuals born to drinking households would be
potentially affected by the treatment. The paucity of information on the
demographic profile of drinkers during this historical time period makes
it difficult to obtain a precise estimate of this figure. We, can,
however, use the available statistics to provide a rough range of the
exposed population. The earliest available estimates characterize
alcohol consumption in the 1940s, two to three decades after the time
period of analysis for our study. According to Efron and Keller (1963),
75% of men and 56% of women were drinkers in 1946. Efron and Keller also
provide estimates of the average number of alcoholics in a given year
between 1940 and 1945 by gender--2,970,000 million men and 530,000 women
or 4.5% of the male population and 0.81% of the female population. (29)
These figures allow us to develop rough bounds on the
treatment-on-the-treated estimates. Applying the figures for drinkers to
our education results suggests treatment-on-the-treated estimates
between 0.53 and 0.71 additional years of education per year of exposure
under age 8. These estimates are of course larger, 0.89 and 4.94
additional years of education respectively, when we use instead the
percentages of alcoholics in the population. Excluding the implausibly
large effect of almost five additional years based on the estimated
proportion of female alcoholics, these estimated effects imply
percentage increases in educational attainment between 5.8% and 9.8% per
year of exposure up to age 8.
For obesity, the negative and significant estimated coefficients on
Exp8 and Exp10 suggest a reduction in the probability of obesity with
additional years of exposure to state prohibition in childhood. Based on
estimates of the proportion of drinkers, the range of
treatment-on-the-treated estimates is from a 0.11 to a 0.14 percentage
point reduction in the probability of obesity with each additional year
of exposure up to age 8. Given the sample mean value of obese, 2.25%,
the estimated coefficient on Exp8 corresponds to a
treatment-on-the-treated effect of about 5%.
Although we fail to estimate statistically significant effects of
exposure to state prohibitions on height, it remains instructive to
gauge the magnitude of effects implied by the estimated coefficients.
Again applying estimates of the proportion of drinkers in the
population, the estimated coefficient on Exp8 implies an increase in
height of between 0.01 and 0.013 inches for each year of exposure up to
age 8. With 8 years of exposure, this would translate into about an
additional 0.09 inches. While this effect appears small given the sample
mean height of 68.61 inches, we can also compare the estimated effect to
the increase in height experienced by men during this time period.
According to Fogel et al. (1983), mean height among U.S. males grew at a
rate of 1.2 inches per generation (i.e., 30 years) between cohorts born
in 1906 and 1921. Viewed in this light, the estimated effect of exposure
on height is larger but remains fairly modest.
C. Mechanisms
We explore the potential mechanisms that may underlie our results
through three additional exercises. First, we examine the relative
importance of being first exposed to state prohibition in utero and in
early childhood by defining alternative exposure variables. As in Hoynes
et al. (2012), exposure in this context is "from above," which
implies that someone exposed in utero was also exposed as a child. The
variable, Child_exp, takes the value of one for individuals born between
5 years before and 1 year before their birth state adopted prohibition
(i.e., men who were first exposed between the ages of about 5 and 1).
Full_exp takes the value of one for individuals born in the year of
adoption or after adoption (i.e., men who were exposed in utero and as
children). (30) With both of these exposure variables included in
Equation (I), the excluded category is men who were first exposed to
state alcohol prohibition between the ages of about 5 and 10.
Table 4 reports the results of estimating our primary
specifications with these two alternative exposure measures for
education, obesity, and ln(height). The fourth column of the table
reports p values for tests of equivalence between the estimated
coefficients on Child_exp and Full_exp. The final column reports p
values for tests of joint significance. In general, the coefficients are
less precisely estimated in these models. For education, the estimated
coefficients suggest higher educational attainment for men first exposed
as young children or in utero compared to men first exposed as older
children. Although the latter result is statistically insignificant, the
two coefficients are jointly significant. We find a similar result for
height but the two estimated coefficients in the obesity model are not
jointly significant at conventional levels. For all three outcome
variables, we fail to detect a significant difference between the two
estimated coefficients. As a result, the results reported in Table 4 do
not allow us to distinguish between in utero and early childhood initial
exposure as the primary driver of our earlier results but rather suggest
potentially important exposure effects during both developmental
periods.
The fact that both periods of exposure appear to contribute to the
observed effects does, however, provide some insight into the relative
importance of the two mechanisms. (31) Nilsson (2014) finds that a
policy that sharply increased alcohol availability, and alcohol
consumption, during a short period in Sweden in the 1960s resulted in
lower wages and educational attainment for those individuals exposed to
the policy in utero. Similar effects were not detected among those
cohorts exposed to the policy as young children. If Nilsson's
results are driven, as he suggests, by increased maternal alcohol
consumption, then they indicate that this channel has important
long-term effects for those exposed in utero but not as young children.
Given this, the similar effects that we detect for both periods of
exposure provide some evidence that an intrahousehold shift in
resources, not a reduction in maternal alcohol consumption, is the
primary mechanism underlying our results.
Second, we follow Owens (2011) in constructing a proxy for the
demand for illegal alcohol in a state during prohibition and allow the
effect of early exposure to vary with this measure. Owens (2011)
proposes the ratio of wet (i.e., against) to dry (i.e., for) votes for
the state prohibition law as a proxy for the demand for illegal alcohol.
We construct a similar measure, denoted Vote_ratio, using information
reported in her Table 1 (p. 6). Unfortunately, vote counts are
unavailable for seven states (Arkansas, Georgia, Indiana, Iowa,
Mississippi, New Hampshire, and Tennessee) represented in our early
analyses. As a result, draftees born in these states are excluded from
the estimating samples for this robustness check. If the reduction in
alcohol consumption due to state prohibition is lower in states with a
higher demand for illegal alcohol, then the effect of early exposure
should be attenuated in these states. Alternatively, because the wet-dry
vote ratio indicates the strength of resistance within the state to
passing state prohibition, it may also provide a measure of alcohol
consumption within the state prior to the state prohibition. If
preprohibition alcohol consumption was high and the state prohibition
was effective in reducing consumption, then we would expect larger
reductions in consumption following prohibition. This would suggest a
larger effect of early exposure in states with high values of
Vote_ratio.
Table 5 reports coefficient estimates from specifications that
include exposure measured by Exp8 as well as an interaction between Exp8
and Vote_ratio. (32) The signs of the estimated coefficients on the
interaction terms for all three outcome variables suggest a larger
effect of exposure in states with a higher wet-dry ratio. Thus, the
empirical results are more consistent with the wet-dry ratio proxying
for the level of preprohibition consumption of alcohol than for the
demand for illegal alcohol postprohibition. To facilitate comparisons
with our main results, the fourth column of the table reports the
estimated effect of early exposure evaluated at the sample mean of
Vote_ratio for the two estimating samples. The estimated effects of
early exposure at the mean of Vote_ratio are significant for education
and obesity but not for height, consistent with our main results.
The final exercise explores the potential effects of heterogeneity
in state prohibition laws on the estimated effects of exposure to state
prohibitions. As mentioned earlier, some state prohibition laws were
more stringent than others. A priori the effect of exposure to a more
stringent prohibition law relative to a less stringent law is ambiguous.
On the one hand, a more stringent law could encourage a more active
underground market and potentially more potent alcohol as people
resorted to home production. On the other hand, a more stringent law
could be more effective in curbing consumption. To explore this
empirically, we create a dummy variable, Prohib, which takes the value
of one for states that adopted outright (i.e., bone dry) prohibition,
and zero for states with prohibition laws that allowed importation or
home production for personal use (i.e., temperance) (Owens 2011). We
then interact this variable with our measure of exposure, Exp8. Table 6
reports the results. The final column reports the estimated coefficient
of an additional year of exposure before age 8 under outright
prohibition (i.e., the sum of the coefficients on Exp8 and Exp8*prohib).
The results for education suggest a significantly larger effect of
exposure in states with outright prohibition, relative to temperance
states while the results for obesity suggest the opposite. The
inconsistent results across these two outcome variables may be explained
by some systematic unobserved difference in the set of states that
adopted outright prohibition rather than temperance.
V. CONCLUSION
Recent research in the fetal origins literature suggests the
potential for positive changes in the in utero and/or early childhood
environment to have long-lasting effects that persist into adulthood. We
document such effects associated with pre- and early postnatal exposure
to statewide alcohol prohibitions at the turn of the twentieth century.
Specifically, we find that those adult men in our sample exposed to
prohibition in utero and as young children enjoy an increase in
educational attainment and a decrease in the likelihood of obesity. We
also find small, positive effects on adult height, but these effects are
never statistically significant. These findings are consistent with the
hypothesis that prohibition impacted in utero and early childhood
environmental conditions in positive ways. While our data prevent us
from definitively identifying the precise channel through which these
effects arise, our findings are more consistent with an intrahousehold
shift in resources than with reduced maternal consumption of alcohol.
It is important to note that while our analysis documents positive
benefits of alcohol prohibition during this historical time period, it
does not speak to the attendant costs. In addition, because of important
differences between the alcohol culture in the early 1900s and the
modern-day alcohol and drug cultures, we caution against extrapolating
our results to current debates on alcohol and drug policies.
ABBREVIATIONS
ASL: Anti-Saloon League
BMI: Body Mass Index
CDC: Centers for Disease Control
EASMF: Electronic Army Serial Merged File
FAS: Fetal Alcohol Syndrome
FASD: Fetal Alcohol Spectrum Disorder
NARA: National Archives and Records Administration
PUMS: Public Use Microsample
WAAC: Women's Army Auxiliary Corps
doi: 10.1111/ecin.12303
Online Early publication November 27, 2015
APPENDIX
ADDITIONAL ROBUSTNESS TESTS
TABLE A1
Estimated Effects of Early Exposure to State Alcohol
Prohibition among All Enlistees
Dependent Variable
Education Obese
Exposure Estimated Coefficient
Variable (Standard Error)
Exp8 0.024 ** -- -0.00074 ** --
(0.0094) (0.00023)
Exp 10 -- 0.032 ** -- -0.0011 **
(0.010) (0.00025)
[R.sup.2] 0.088 0.088 0.0065 0.0065
Dependent Variable
ln(Height)
Exposure Estimated Coefficient
Variable (Standard Error)
Exp8 0.000081 --
(0.000093)
Exp 10 -- 0.00012
(0.00010)
[R.sup.2] 0.026 0.026
Notes: Models include fixed effects for birth state and
cohort/by/age at enlistment; preadoption state
characteristics and trend interactions. Standard errors are
corrected for clustering on birth state by year. Number of
observations is 2,255,750 for the education sample and
1,389,781 for the obesity/height sample.
** Significance at 1% level.
TABLE A2
Estimated Effects of Early Exposure to State Alcohol
Prohibition--No Restriction on Years from Dry
Dependent Variable
Education Obese
Exposure Estimated Coefficient
Variable (Standard Error)
Exp8 0.014 -- -0.00043 ([dagger]) --
(0.0078) (0.00024)
ExplO -- 0.025 ** -- -0.00060 *
(0.0092) (0.00026)
[R.sup.2] 0.091 0.091 0.0062 0.0062
Dependent Variable
In(Height)
Exposure Estimated Coefficient
Variable (Standard Error)
Exp8 -0.000013 --
(0.000086)
Exp10 -- 0.000029
(0.000091)
[R.sup.2] 0.025 0.025
Notes: Models include fixed effects for birth state and
cohort/by/age at enlistment; preadoption state
characteristics and trend interactions. Standard errors are
corrected for clustering on birth state by year. Number of
observations is 1,756,737 for the education sample and
1,022,815 for the obesity/height sample.
** Significance at 1%; * Significance at 5% level;
([dagger]) Significance at 10% level.
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MARY F. EVANS, ERIC HELLAND, JONATHAN KLICK and ASHWIN PATEL *
* Comments from two anonymous reviewers and Lars Lefgren greatly
improved the manuscript. Paul Heaton provided helpful comments on an
earlier draft. We thank Lynn Goodsell at the National Archives and
Records Administration for her help with the WWII data. Shaun
Khubchandani provided excellent research assistance.
Evans: Associate Professor of Economics, The Robert Day School of
Economics and Finance, Claremont McKenna College, Claremont, CA 91711.
Phone 909-607-3423, Fax 909-621-8249, E-mail mevans@cmc.edu
Helland: Professor of Economics, The Robert Day School of Economics
and Finance, Claremont McKenna College, Claremont, CA 91711; RAND
Corporation, Santa Monica, CA 90401. Phone 909-607-7275, Fax
909-621-8249, E-mail ehelland@cmc.edu
Klick: Professor of Economics, University of Pennsylvania Law
School, University of Pennsylvania, Philadelphia, PA 19104. Phone
215-746-3455, Fax 215-537-2025, E-mail jklick@law.upenn.edu
Patel: Adjunct Assistant Professor, Robert F. Wagner Graduate
School of Public Service, New York University, Secaucus, NJ 07094. Phone
201 -232-9311, Fax 855-412-1787, E-mail ashwin.patel@nyu.edu
(1.) See also Almond and Currie (2011) and Currie (2011) for more
citations from this literature.
(2.) Related work by Hoynes, Miller, and Simon (2015) finds a
positive impact of increased income, through the earned income tax
credit, on the incidence of low birth weight. Improved prenatal care and
less negative maternal health behaviors provide the mechanisms for this
result.
(3.) See also Baird et al. (2015) and Luca (2014).
(4.) Owens (2011) notes "Bars and saloons were depicted in
popular culture as places where men wasted money that could have been
spent on their families" (p. 5).
(5.) Warburton (1932) suggests declines in "per capita
consumption of pure alcohol" during the period from 1910 to 1919.
LaVallee and Yi (2011) document small reductions in per capita apparent
ethanol consumption during the same period. In contrast, Figure 7 in
Dills and Miron (2004) does not indicate a decline in "per capita
alcohol consumption" until around 1918; the U.S. annual cirrhosis
death rate, also reported in their Figure 7, begins to decline earlier,
around 1908. Dills and Miron (2004) argue that state prohibitions
contributed little to this decline but ultimately conclude "Thus,
we are skeptical that the pre-1920 decline in cirrhosis is mainly due to
anti-alcohol policies, but we cannot rule out the possibility" (p.
214). Data reported in Blocker (1994) indicate a downward trend in the
number of retail liquor and malt liquor dealers per 1,000 population
that begins around 1907. Studies using more recent data suggest a
positive association between outlet (e.g., retail liquor dealers)
density and alcohol consumption (see Campbell et al. 2008 and the
citations therein).
(6.) While not a direct income transfer, the increase in household
resources from reduced alcohol consumption could result in reduced
maternal stress, which has been shown to improve birth weight (Aizer,
Stroud, and Buka 2009; Evans and Garthwaite 2010). Some evidence from
developing countries has shown improved birth outcomes from conditional
cash transfer programs (see, e.g., Barber and Gertler 2010).
(7.) Metabolic disorders include obesity, hypertension, type II
diabetes, and cardiovascular disease.
(8.) http://www.cdc.gov/ncbddd/fasd/alcohol-use.html
(9.) See http://www.cdc.gov/ncbddd/fasd/documents/fas_guidelines_accessible.pdf for the full criteria.
(10.) Jones and Smith (1973) provide the first description of FAS.
(11.) Figure 1 includes only those states represented in our
analysis. Kansas, Maine, and North Dakota adopted alcohol prohibition
before 1900 and are excluded from our analysis. Alabama passed statewide
prohibition twice during our study period, first in 1908 (repealed in
1911) and again in 1914. Our research design precludes us from including
Alabama in our analysis. New Hampshire first adopted statewide
prohibition in 1855 but repealed it in 1903. For most states, the
adoption year is the year the law was passed according to Dills and
Miron (2004). We confirmed these adoption years using information from
the Anti-Saloon League (ASL), specifically maps from the ASL Year Books
for the period 1908-1918 provided by the Westerfield Public Library in
Westerfield, Ohio. For West Virginia, the two data sources conflict.
West Virginia passed statewide prohibition in 1912, but the law did not
take effect until sometime in 1914. West Virginia's adoption date
as listed in Figure 1 reflects this updated information.
(12.) Aside from these two primary challenges, our identification
strategy would be in question if the adoption of state alcohol
prohibitions was temporally clustered with the adoption of other
relevant reforms (e.g., women's suffrage). Using the information on
state-level suffrage laws in Miller (2008), we regress state prohibition
adoption year on the year of women's suffrage for our sample of
states. The coefficient on women's suffrage is -0.056 and
insignificant, suggesting no discernible relationship. Miller reports
similar results using the full sample of states.
(13.) This is consistent with Bailey (2006) but differs somewhat
from the technique used by Hoynes and Schanzenbach (2009), which would
involve regressing our "time to adoption" variable on all of
the state-level characteristics simultaneously. In such a model, which
has an [R.sup.2] of .43, only the variable measuring race is
individually significant (South is marginally significant), so we opted
for the univariate regressions.
(14.) The original sources for the digitized data were punch cards,
which contained basic information about enlistees, recorded at the time
they entered service. The punch cards were destroyed after being
microfilmed. See Hull (2006) for a more detailed discussion of the
dataset's history.
(15.) Thirteen percent of the original records were unreadable
(Hull 2006).
(16.) Beginning in 1943, the "height" and
"weight" fields were used for other purposes (i.e., to
indicate Military Occupational Specialty).
(17.) We are unable to implement the exact sample restrictions used
in Bleakley et al. (2014) due to our focus on height and weight and the
limited availability of these measures in the EASMF data. Our
restrictions on age of enlistment, race, gender, height, and weight
mimic theirs.
(18.) Members of the Enlisted Reserve Corps may also differ
systematically from regular Army enlistees and generally from other
members of their birth cohorts.
(19.) The raw data include 9,200,232 observations, and 162,266 of
these are duplicate observations; 41,896 have invalid values for
enlistment year; 495,588 are missing values for birth state; 207,637
represent members of the Enlisted Reserve Corps.
(20.) WAAC members represent less than 2% of the raw EASMF dataset.
Eighty percent of the observations in raw dataset represent white
individuals.
(21.) Year 1903 is the year in which New Hampshire repealed its
first statewide alcohol prohibition, adopted in 1855. The 1923
restriction is consistent with Bleakley et al. (2014).
(22.) The age ranges of the samples we ultimately use in estimating
our models are somewhat narrower due to other exclusion restrictions
(e.g., based on year of birth) and data limitations (e.g., on our height
variable).
(23.) We report the robustness of our results to relaxing this
assumption in the Appendix. See the related discussion in footnote 27.
(24.) We follow Bleakley et al. (2014) and assign an educational
attainment equal to 4.5 for individuals whose educational attainment is
listed in the data as exactly 8 years. The data do not include values of
educational attainment less than 8 years.
(25.) Because we know only year of birth (not month or date) and
the year in which the state adopted statewide prohibition (not the month
or date of adoption), we cannot identify the "years from dry"
values that correspond to individuals who were in utero with certainty.
(26.) Our main results are qualitatively similar if we enhance the
set of fixed effects to include state-by-enlistment year fixed effects
or state-by-age at enlistment fixed effects. Results are also robust to
excluding the state-specific trends.
(27.) Table A1 reports results from the same models estimated with
the sample of all enlistees. The estimated effects with the inclusion of
voluntary enlistees, in addition to draftees, are qualitatively similar
to those reported in Table 3. Table A2 reports results from the models
estimated without the years-from-dry restriction using the sample of
draftees. In general, the estimated coefficients are smaller and less
precisely estimated than those reported in Table 3. We also estimated
the models using samples that exclude draftees who were born in 1918,
and therefore may have been exposed in utero to Spanish influenza (see
Almond 2006). Our results (unreported but available from the authors)
are also robust to this change.
(28.) Note that the predicted relationship between health
improvements in early life and educational attainment is ambiguous; if
brawn is of relatively greater value than brain in the labor market,
then improvements in child health could actually increase the
opportunity cost of schooling. See Bleakley (2010), Bleakley et al.
(2014), Pitt et al. (2012), and Yamaguchi (2008).
(29.) This calculation assumes a total male population of
66,061,592 and female population of 65,607,683 (Grove and Hetzel 1968).
Efron and Keller arrive at estimates of the total number of alcoholics
by multiplying by a factor of five estimates of the number of
"alcoholics with complications" based on the Jellinek formula.
The Jellinek formula uses information on the number of deaths from
cirrhosis of the liver.
(30.) Because we observe only the year of birth and the year a
state adopted prohibition, this variable provides a measure of
approximate in utero exposure.
(31.) A third plausible mechanism for our findings, but one which
we unfortunately are unable to explore empirically, is a reduction in
violence associated with lower alcohol consumption. While early time
series evidence found a positive association between the temperance
movement and crime (Dills and Miron 2004), results from more recent
panel data analysis indicate a positive association between dry laws and
the homicide rate in most states (Owens 2011). Other recent studies also
find a reduction in crime with restrictions on drinking. Bleakley and
Owens (2010) find that the passage of county-level dry ordinances
reduced the incidence of lynchings. One of the mechanisms proposed to
explain this result is a changed pattern of social behavior resulting in
young men spending "less time in saloons, and more time engaged
with family members ..." (p. 3). Results from Luca et al. (2014)
suggest lower rates of violence against women among Indian states with
higher minimum legal drinking ages. See also Cook and Durrance (2013).
(32.) Results are similar for Exp10.
TABLE 1
Predictors of State Alcohol Prohibition Timing
Estimated
Sample Mean Coefficient
(Standard (Robust
Variable Deviation) Standard Error) [R.sup.2]
% of population living on 45.89 -0.091 * 0.20
farm (17.22) (0.038)
% of population black 13.12 -0.088 * 0.21
(18.57) (0.038)
% of population 8.64 -0.061 0.0015
unemployed (2.28) (0.34)
% of population native 88.89 -0.17 * 0.19
born (9.05) (0.066)
% of population age 5-18 73.45 0.029 0.0095
enrolled in school (11.84) (0.052)
Population density 25.68 -0.0069 0.0024
(25.22) (0.026)
South 0.34 -2.22 0.092
(0.48) (1.60)
Note: The first three variables were created using PUMS data and
second three variables were created using the 1901 Statistical
Abstract of the United States.
* Significance at 5% level.
TABLE 2
Variable Descriptions and Summary Statistics
Mean (Standard Deviation)
or Percent of Sample for
Binary Variables
Education Obesity/Height
Variable Name Description Sample Sample
Age Age at time of 25.56 25.28
enlistment (4.57) (4.30)
Height Height in inches at time -- 68.51
of enlistment (2.55)
Weight Weight in pounds at time -- 149.57
of enlistment (23.89)
Obese = 1 if body mass index -- 2.25
at time of enlistment
is greater than or
equal to 30, = 0
otherwise
Education Educational attainment 9.06 8.94
in years at time of (3.72) (3.78)
enlistment
Exp8 Number of years of 6.73 6.66
exposure up to age 8 (2.36) (2.40)
Exp10 Number of years of 8.69 8.61
exposure up to age 10 (2.50) (2.55)
Child_exp = 1 for men who were 20.45 22.21
first exposed between
the ages of about five
and one
Full_exp = 1 for men who were 69.66 67.46
first exposed in utero
Range of enlistment years represented in 1939-1946 1940-1942
sample
Range of ages represented in sample 20-41 20-38
Range of birth years represented in 1904-1923 1904-1922
sample
Number of observations 1,704,191 1,389,781
TABLE 3
Estimated Effects of Early Exposure to State Alcohol Prohibition
Dependent Variable
Education Obese
Exposure Variable Estimated Coefficient (Standard Error)
Exp8 0.042 ** -- -0.00080 ** --
(0.011) (0.00027)
Exp10 -- 0.054 ** -- -0.0012 **
(0.012) (0.00030)
[R.sup.2] 0.092 0.092 0.0057 0.0057
Dependent Variable
In(Height)
Estimated Coefficient
Exposure Variable (Standard Error)
Exp8 0.00011 --
(0.00011)
Exp10 -- 0.00018
(0.00012)
[R.sup.2] 0.024 0.024
Notes: Models include fixed effects for birth state and cohort-by-
age at enlistment; state linear time trends; preadoption state
characteristics and trend interactions. Standard errors are corrected
for clustering on birth state by year. Number of observations is
1,704,191 for the education sample and 985,118 for the obesity/
height sample.
** Significance at 1% level.
TABLE 4
Estimated Effects of First Exposure to State Alcohol
Prohibition in Early Childhood and In Utero
p Value
Estimated Coeffp Value for for Joint
(Standard ErrorEquivalency Significance
Dependent of Estimated of Estimated
Variable Child_exp Full_exp Coefficients Coefficients
Education 0.089 * 0.078 0.67 0.011
(0.036) (0.053)
Obese -0.0017 -0.0014 0.65 0.15
(0.0011) (0.0015)
ln(height) 0.00070 * 0.00028 0.15 0.0018
(0.00030) (0.00051)
Notes: Models include fixed effects for birth state and
cohort-by-age at enlistment; preadoption state
characteristics and trend interactions. Standard errors are
corrected for clustering on birth state by year. Number of
observations is 1,704,191 for the education sample and
985,118 for the obesity/height sample.
* Significance at 5% level.
TABLE 5
Estimated Effects of Early Exposure with the Effect of
Exposure Varying with a Measure of the Demand for Alcohol
Estimated
Effect of
Estimated CoefficiEarly Exposure Sample Mean
(Standard Error) at Mean of (Standard
Vote_ratio Deviation)
Dependent Exp8 * (Standard of
Variable Exp8 vote_ratio Error) Vote_ratio
Education -0.089 ** 0.0016 ** 0.035 ** 76.85
(0.031) (0.00042) (0.013) (18.84)
Obese -0.00056 -0.0000039 -0.00086 ** 77.14
(0.00076) (0.0000099) (0.00031) (18.51)
ln(height) -0.0011 ** 0.000015 ** 0.000097
(0.00030) (0.0000041) (0.00013)
Notes'. Models include fixed effects for birth state and
cohort/by/age at enlistment; preadoption state
characteristics and trend interactions. Standard errors are
corrected for clustering on birth state by year. Number of
observations is 1,221,807 for the education sample and
717,548 for the obesity/height sample.
** Significance at 1% level.
TABLE 6
Estimated Effects of Exposure with the Effect of
Exposure Varying with a Dummy Variable for
Outright Prohibition
Estimated Coefficient
(Standard Error)
Estimated Effect of
Early Exposure under
Dependent Exp 8 * Outright Prohibition
Variable Exp8 prohib (Standard Error)
Education 0.028 * 0.0066 ** 0.094 **
(0.012) (0.015) (0.014)
Obese -0.0010 ** 0.00011 * 0.00009
(0.00027) (0.00044) (0.00046)
ln(height) 0.000014 -0.00017 -0.000026
(0.00012) (0.00012) (0.00013)
Notes: Models include fixed effects for birth state and cohort-by-
age at enlistment; preadoption state characteristics and trend
interactions. Standard errors are corrected for clustering on
birth state by year. Number of observations is 1,704,191 for the
education sample and 985,118 for the obesity/height sample.
* Significance at 5% level. ** Significance at 1% level.
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