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Smoking and wage rates – Evidence from Japanese panel data

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  • Sun, Yawen

Abstract

This paper analyzes smoking behavior and its effects on wage rate. It is widely known that smoking has negative health effects and to discourage the practice, governments frequently implement policies such as tax increases and restrictions on public smoking. To evaluate these policies, it is necessary to understand the economic benefits and costs of reducing the number of smokers. We conduct a panel data analysis while controlling for unobserved heterogeneity and show that smoking is not the main factor causing observed wage differentials between smokers and non-smokers in Japan.

Suggested Citation

  • Sun, Yawen, 2019. "Smoking and wage rates – Evidence from Japanese panel data," Japan and the World Economy, Elsevier, vol. 49(C), pages 138-150.
    • Handle: RePEc:eee:japwor:v:49:y:2019:i:c:p:138-150
    DOI: 10.1016/j.japwor.2018.10.002
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    References listed on IDEAS

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    More about this item

    Keywords

    Smoking; Wage; Panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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