Unemployment and sin products consumption

Date

2013-10

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Abstract

Common perception and recent media reports tell us that Filipino households still consume alcohol and tobacco products even with no stable source of income. This study aims to determine the effect of unemployment on sin products consumption of the Filipino household. The study makes use of the results of the Family Income and Expenditures Survey (FIES) of2009. We run Ordinary Least Squares regression on the consumption of alcohol and consumption of tobacco. Results show that unemployment has significant effects on the consumption of sin products. Unemployment tends to decrease consumption of alcohol and tobacco, however, only if we relax the significance level to l 0% for tobacco. Results also show that total income has no significant effect on the consumption of alcohol products but has significant and negative effects on tobacco consumption.

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Keywords

Alcohol consumtion, Tobacco consumption, Unemployment

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