Does Smoking Really Harm Your Earnings so Much? Biases in Current Estimates of the Smoking Wage Penalty
AbstractEmpirical studies on the earnings effects of tobacco use have found significant wage penalties attached to smoking. This article produces evidence that suggests that these estimates are significantly upward biased. The bias arises from a general failure in the literature to control for past smoking behaviour of individuals. Two-Stage Least Squares (2SLS) regressions show that the smoking wage penalty is reduced by as much as a third, if past smoking of individuals is controlled for. --
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Volume (Year): (2010)
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Smoking; Wages; Earnings; Regressions;
Other versions of this item:
- Silke Anger & Michael Kvasnicka, 2010. "Does smoking really harm your earnings so much? Biases in current estimates of the smoking wage penalty," Applied Economics Letters, Taylor & Francis Journals, vol. 17(6), pages 561-564.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- I19 - Health, Education, and Welfare - - Health - - - Other
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
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