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The Effect of Smoking Bans on Bars and Restaurants: An Analysis of Changes in Employment

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Author Info
Scott Adams (University of Wisconsin-Milwaukee)
Chad D. Cotti (University of South Carolina)

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Abstract

Many communities and several states prohibit smoking in bars or restaurants. Using county-level data on employment from across the US, we find that communities where smoking is banned experience reductions in bar employment compared with counties that allow smoking. Smoking bans have a larger detrimental impact on bars in geographic areas with a high prevalence of smokers. The relative effect on restaurant employment is neutral or mildly positive. The positive effects are concentrated in areas with fewer smokers. We also find that bans have a positive effect on restaurant employment in warmer regions of the country, especially during the cooler winter months, and in the summer in colder regions. This suggests the prevalence of outdoor seating might influence the policy's effect.

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File URL: http://www.bepress.com/cgi/viewcontent.cgi?article=1628&context=bejeap
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Publisher Info
Article provided by Berkeley Electronic Press in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 7 (2007)
Issue (Month): 1 ()
Pages:
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Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:12

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Related research
Keywords: employment; local government regulation; smoking;

Find related papers by JEL classification:
J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Gruber, Jonathan & Sen, Anindya & Stabile, Mark, 2003. "Estimating price elasticities when there is smuggling: the sensitivity of smoking to price in Canada," Journal of Health Economics, Elsevier, vol. 22(5), pages 821-842, September. [Downloadable!] (restricted)
    Other versions:
  2. Michael R. Pakko, 2005. "The economics of smoking bans: peering through the haze," The Regional Economist, Federal Reserve Bank of St. Louis, issue Jul, pages 12-13. [Downloadable!]
  3. Dunham, John & Marlow, Michael L, 2000. "The Effects of Smoking Laws on Seating Allocations of Restaurants, Bars, and Taverns," Economic Inquiry, Oxford University Press, vol. 38(1), pages 151-57, January.
  4. J. Dunham & ML. Marlow, 2000. "Smoking laws and their differential effects on restaurants, bars, and taverns," Contemporary Economic Policy, Western Economic Association International, vol. 18(3), pages 326-333, 07. [Downloadable!] (restricted)
  5. Benjamin C. Alamar & Stanton A. Glantz, 2004. "Smoke-free Ordinances Increase Restaurant Profit and Value," Contemporary Economic Policy, Western Economic Association International, vol. 22(4), pages 520-525, October. [Downloadable!] (restricted)
  6. Rosen, Sherwin, 1987. "The theory of equalizing differences," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 12, pages 641-692 Elsevier. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Thomas A. Garrett & Michael R. Pakko, 2009. "Casino revenue and the Illinois smoking ban," Working Papers 2009-027, Federal Reserve Bank of St. Louis. [Downloadable!]
  2. Michael R. Pakko, 2008. "The economic impact of a smoking ban in Columbia, Missouri: an analysis of sales tax data for the first year," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 30-40. [Downloadable!]
  3. Silvia Tiezzi, 2009. "The Economic Impact of Clean Indoor Air Laws: A Review of Alternative Approaches and of Empirical findings," Department of Economics University of Siena 570, Department of Economics, University of Siena. [Downloadable!]
  4. Gabriel Ahlfeldt & Wolfgang Maennig, 2009. "Impact of Non-Smoking Ordinances on Hospitality Revenues: The Case of Germany," Working Papers 026, Chair for Economic Policy, University of Hamburg. [Downloadable!]
  5. Marianne P. Bitler & Christopher Carpenter & Madeline Zavodny, 2009. "Effects of Venue-Specific State Clean Indoor Air Laws on Smoking-Related Outcomes," NBER Working Papers 15229, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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