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Forgone earnings from smoking : evidence for a developing country

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Author Info
Lokshin, Michael
Beegle, Kathleen

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Abstract

The authors estimate the economic losses related to the negative effect of smoking on wages in a context of a developing country. Using data from the 2005 Albania Living Standards Monitoring Survey, they jointly estimate a system of three equations: the smoking decision and two separate wage equations for smokers and nonsmokers. The results show that, after controlling for observed characteristics and taking into account unobserved heterogeneity in personal characteristics, smoking has a substantial negative impact on wages. On average smokers'wages are 20 percent lower than the wages of similar nonsmokers, providing strong evidence for the potential policy relevance of tobacco control initiatives for developing countries.

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Publisher Info
Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4018.

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Date of creation: 01 Oct 2006
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Handle: RePEc:wbk:wbrwps:4018

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Related research
Keywords: Health Monitoring&Evaluation; Tobacco Use and Control; Alcohol and Substance Abuse; Adolescent Health; Disease Control&Prevention;

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  1. M. Christopher Auld, 2005. "Smoking, Drinking, and Income," Journal of Human Resources, University of Wisconsin Press, vol. 40(2). [Downloadable!] (restricted)
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This page was last updated on 2009-12-1.

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