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Wages and Alcohol Consumption, Smoking, Weight Gain and Exercising: Evidence on Australian Men and Women

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Author Info
Hirschberg, J.
Lye, J.N.

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Abstract

The good health of an individual is a combination of uncontrollable factors that includes genetics and random events and controllable factors through the regulation of activities such as smoking, drinking, eating, exercise and other informed choices. Since the work of Grossman (1972) a significant relationship between health and earnings is predicted. This paper investigates this relationship using four indicators of healthy activity in the context of Australia. Using the 1995 Australian National Health Survey we simultaneously examine the effects of drinking, smoking, eating and exercising on wages. Special attention is given to nonlinearities and interaction of these effects between each other and with age as is suggested in the medical literature. To model the interaction of smoking with these other effects separate models are fit for smokers and nonsmokers which account for the potentional for selectivity bias. Results are given separately for men and women.

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Publisher Info
Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 684.

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Length: 46 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:mlb:wpaper:684

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Postal: Department of Economics, The University of Melbourne, 5th Floor, Economics and Commerce Building, Victoria, 3010, Australia
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Web page: http://www.economics.unimelb.edu.au
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Related research
Keywords: CONSUMPTION ; WAGES ; AGE;

Other versions of this item:

Find related papers by JEL classification:
I10 - Health, Education, and Welfare - - Health - - - General
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

Cited by:
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  1. Jenny N. Lye & Joseph G. Hirschberg, 2002. "Tests of Inference for Dummy Variables in Regressions with Logarithmic Transformed Dependent Variables," Department of Economics - Working Papers Series 852, The University of Melbourne. [Downloadable!]
Statistics
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This page was last updated on 2009-11-23.


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