Pregnancy persistently reduces alcohol purchases: Causal evidence from scanner data

• Main Authors: JANSSEN, Aljoscha, PARSLOW, Elle
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Alcohol; habits; pregnancy; Behavioral Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2444; https://ink.library.smu.edu.sg/context/soe_research/article/3443/viewcontent/Pregnancy_alcohol_scanner_av.pdf
• Institution: Singapore Management University

We analyze household-level changes in alcohol consumption in response to pregnancy. Using scanner data, we identify households with a pregnant household member. Within an event study and a dynamic difference-in-differences estimation, we find that during a first pregnancy, households reduce their alcohol purchases by 36%. After pregnancy, purchases of alcohol are 34% lower than before pregnancy. We do not find any effect during the second pregnancy. One possible explanation for our result is that lower consumption during pregnancy changes habits and reduces consumption in the long term. We discuss other explanations and comment on policy implications.