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Does Job Loss Make You Smoke and Gain Weight?

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  • Jan Marcus

Abstract

This paper estimates the effect of involuntary job loss on smoking behavior and body weight using German Socio-Economic Panel Study data. Baseline nonsmokers are more likely to start smoking due to job loss, while smokers do not intensify their smoking. Job loss increases body weight slightly, but significantly. In particular, single individuals as well as those with lower health or socioeconomic status prior to job loss exhibit high rates of smoking initiation. The applied regression-adjusted semiparametric difference-in-difference matching strategy is robust against selection on observables and time-invariant unobservables. This paper provides an indirect test showing that the identifying assumption is not violated in the difference-in-difference estimator. The findings are robust over various matching specifications and different choices of the conditioning variables.

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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 432.

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Length: 33 p.
Date of creation: 2012
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp432

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Keywords: Job loss; smoking; body weight; health behavior; difference-in-difference; propensity score matching;

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References

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  1. Kuhn, Andreas & Lalive, Rafael & Zweimüller, Josef, 2009. "The Public Health Costs of Job Loss," IZA Discussion Papers 4355, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Reinhard Schunck & Benedikt G. Rogge, 2012. "Unemployment and Smoking: Causation, Selection, or Common Cause? Evidence from Longitudinal Data," SOEPpapers on Multidisciplinary Panel Data Research 491, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Marcus, Jan, 2013. "The effect of unemployment on the mental health of spouses – Evidence from plant closures in Germany," Journal of Health Economics, Elsevier, vol. 32(3), pages 546-558.
  3. Marcus, Jan, 2012. "The effect of involuntary unemployment on the mental health of spouses," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65413, Verein für Socialpolitik / German Economic Association.
  4. Christian Bünnings, 2013. "Does New Health Information Affect Health Behavior? The Effect of Health Events on Smoking Cessation," Ruhr Economic Papers 0459, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  5. Schmitz, H.; & Westphal, M.;, 2013. "Short- and medium-term effects of informal care provision on health," Health, Econometrics and Data Group (HEDG) Working Papers 13/23, HEDG, c/o Department of Economics, University of York.
  6. Black, Sandra E. & Devereux, Paul J. & Salvanes, Kjell G., 2012. "Losing Heart? The Effect of Job Displacement on Health," IZA Discussion Papers 7117, Institute for the Study of Labor (IZA).
  7. André Hajek, 2013. "Life Satisfaction and Unemployment: The Role of Voluntariness and Job Prospects," SOEPpapers on Multidisciplinary Panel Data Research 601, DIW Berlin, The German Socio-Economic Panel (SOEP).
  8. Godard, Mathilde, 2013. "Gaining weight through retirement ? Results from the SHARE survey," Economics Papers from University Paris Dauphine 123456789/11535, Paris Dauphine University.
  9. Eggs, Johannes, 2013. "Unemployment benefit II, unemployment and health," IAB Discussion Paper 201312, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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