Arbeitspapier
Biases in Estimates of the Smoking Wage Penalty
Empirical studies on the earnings effects of tobacco use have found significant wage penalties attached to smoking. We produce evidence that suggests that these estimates are significantly upward biased. The bias arises from a general failure in the literature to control for the past smoking behavior of individuals. 2SLS earnings estimates show that the smoking wage penalty is reduced by as much as a third, if past smoking of individuals is controlled for. Our results also point to significant wage gains for individuals that quit smoking, a finding that is of substantial interest, given the lack of evidence on the earnings effects of smoking cessation.
- Language
-
Englisch
- Bibliographic citation
-
Series: DIW Discussion Papers ; No. 654
- Classification
-
Wirtschaft
Model Construction and Estimation
Health: Other
Wage Level and Structure; Wage Differentials
- Subject
-
Smoking
wages
earnings regressions
- Event
-
Geistige Schöpfung
- (who)
-
Anger, Silke
Kvasnicka, Michael
- Event
-
Veröffentlichung
- (who)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
-
Berlin
- (when)
-
2006
- Handle
- Last update
-
10.03.2024, 11:30 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Anger, Silke
- Kvasnicka, Michael
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2006
Other Objects (12)
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Biases in Estimates of the Smoking Wage Penalty
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Does Smoking Really Harm Your Earnings so Much? Biases in Current Estimates of the Smoking Wage Penalty
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The dynamics of the smoking wage penalty
Biases in fiscal multiplier estimates
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Fermain Bay: im Bus, No Smoking Penalty 25 Pfund
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