Forgone earnings from smoking : evidence for a developing country
AbstractThe 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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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4018.
Date of creation: 01 Oct 2006
Date of revision:
Health Monitoring&Evaluation; Tobacco Use and Control; Alcohol and Substance Abuse; Adolescent Health; Disease Control&Prevention;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-10-14 (All new papers)
- NEP-HEA-2006-10-14 (Health Economics)
- NEP-LAB-2006-10-14 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- M. Christopher Auld, 2005. "Smoking, Drinking, and Income," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
- Nigel Tomes, 1984. "The Effects of Religion and Denomination on Earnings and the Returns to Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 472-488.
- Brune, Lasse F., 2007. "The smoker's wage penalty puzzle: evidence from Britain," ISER Working Paper Series 2007-31, Institute for Social and Economic Research.
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