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.

Sprache
Englisch

Erschienen in
Series: DIW Discussion Papers ; No. 654

Klassifikation
Wirtschaft
Model Construction and Estimation
Health: Other
Wage Level and Structure; Wage Differentials
Thema
Smoking
wages
earnings regressions

Ereignis
Geistige Schöpfung
(wer)
Anger, Silke
Kvasnicka, Michael
Ereignis
Veröffentlichung
(wer)
Deutsches Institut für Wirtschaftsforschung (DIW)
(wo)
Berlin
(wann)
2006

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Anger, Silke
  • Kvasnicka, Michael
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Entstanden

  • 2006

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