Pregnancy and Alcohol Purchases : Evidence from Scanner Data

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 35%. After pregnancy, purchases of alcohol are 31% lower than before pregnancy. We do not find any effect during the second pregnancy. We argue that lower consumption during pregnancy changes habits and reduces consumption in the long term. We exclude other explanations and comment on policy implications