Smoking and Returns to Education: Empirical Evidence for Germany
AbstractLooking at smoking-behavior it can be shown that there are differences concerning the time-preference-rate. Therefore this has an effect on the optimal schooling decision in the way that we assume a lower average human capital level for smokers. According to a higher time-preference-rate we suppose a higher return to education for smokers who go further on education. With our empirical fondings we can confirm the presumptions. We use interactions-terms to regress the average rate of return with the instrumentvariable approach. Therefore we obtain that smokers have a significantly higher average return to education than non-smokers.
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Bibliographic InfoPaper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 420.
Length: 8 p.
Date of creation: 2011
Date of revision:
Returns to education; Human Capital; Smoking Effects;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-03 (All new papers)
- NEP-EDU-2012-01-03 (Education)
- NEP-HEA-2012-01-03 (Health Economics)
- NEP-HRM-2012-01-03 (Human Capital & Human Resource Management)
- NEP-LAB-2012-01-03 (Labour Economics)
- NEP-LMA-2012-01-03 (Labor Markets - Supply, Demand, & Wages)
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