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The impact of smoking intensity on wages in Russia

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  • Ermakov, Stepan

    ()
    (National Research University Higher School of Economics)

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    Abstract

    This paper examines the influence of tobacco smoking on wages in Russia. Using data from the Russian Longitudinal Monitoring Survey and regressions with individual fixed effect we examine the effect of smoking intensity on wages. After the control for unobserved heterogeneity our findings show the statistical insignificance of coefficients on tobacco consumption intensity for men. On this basis we are able to assume the absence of causal explanation of the wage gap between male smokers and non-smokers. Estimates for women don’t allow us to make the same statement but show the 9.2% wage gain of heavy smokers.

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    File URL: http://pe.cemi.rssi.ru/pe_2012_1_70-94.pdf
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    Bibliographic Info

    Article provided by Publishing House "SINERGIA PRESS" in its journal Applied Econometrics.

    Volume (Year): 25 (2012)
    Issue (Month): 1 ()
    Pages: 70-94

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    Handle: RePEc:ris:apltrx:0164

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    Web page: http://appliedeconometrics.cemi.rssi.ru/

    Related research

    Keywords: wage differentials; smoking wage penalty; smoking intensity;

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    1. Silke Anger & Michael Kvasnicka, 2006. "Biases in Estimates of the Smoking Wage Penalty," Discussion Papers of DIW Berlin 654, DIW Berlin, German Institute for Economic Research.
    2. van Ours, Jan C., 2004. "A pint a day raises a man's pay; but smoking blows that gain away," Journal of Health Economics, Elsevier, vol. 23(5), pages 863-886, September.
    3. Sergey Arzhenovsky, 2006. "Socioeconomic determinants of smoking in Russia (in Russian)," Quantile, Quantile, issue 1, pages 81-100, September.
    4. Heineck, Guido & Schwarze, Johannes, 2003. "Substance Use and Earnings: The Case of Smokers in Germany," IZA Discussion Papers 743, Institute for the Study of Labor (IZA).
    5. Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1990. "An Empirical Analysis of Cigarette Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 61, Chicago - Center for Study of Economy and State.
    6. Nils Braakmann, 2008. "The smoking wage penality in the United Kingdom: Regression and matching evidence from the British Household Survey Panel," Working Paper Series in Economics 96, University of Lüneburg, Institute of Economics.
    7. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    8. W. Kip Viscusi & Joni Hersch, 2001. "Cigarette Smokers As Job Risk Takers," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 269-280, May.
    9. Irina B. Grafova & Frank P. Stafford, 2009. "The Wage Effects of Personal Smoking History," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 62(3), pages 381-393, April.
    10. Phillip B. Levine & Tara A. Gustafson & Ann D. Velenchik, 1995. "More Bad News for Smokers? The Effects of Cigarette Smoking on Labor Market Outcomes," NBER Working Papers 5270, National Bureau of Economic Research, Inc.
    11. Kim, Vitally, 2010. "Level of alcohol consumption and worker’s labor market position. Multivariate probit model approach," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 18(2), pages 53-77.
    12. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
    13. M. Christopher Auld, 2005. "Smoking, Drinking, and Income," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
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