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Finally a Smoking Gun? Compensating Differentials and the Introduction of Smoking Bans

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  • Daniel Wissmann

Abstract

Using the staggered introduction of smoking bans in the German hospitality industry over 2007–2008, I find a robust 2.4 percent decline in the daily earnings of workers in bars and restaurants associated with the most comprehensive smoking ban. This effect is unlikely to be driven by a decline in hospitality revenues or hours worked but is consistent with a simple model of compensating differentials.

Suggested Citation

  • Daniel Wissmann, 2022. "Finally a Smoking Gun? Compensating Differentials and the Introduction of Smoking Bans," American Economic Journal: Applied Economics, American Economic Association, vol. 14(1), pages 75-106, January.
    • Handle: RePEc:aea:aejapp:v:14:y:2022:i:1:p:75-106
    DOI: 10.1257/app.20180077
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    Cited by:

    1. Braakmann, Nils & Eberth, Barbara & Wildman, John, 2022. "Worker adjustment to unexpected occupational risk: Evidence from COVID-19," European Economic Review, Elsevier, vol. 150(C).
    2. Markus Nagler & Johannes Rincke & Erwin Winkler, 2022. "High-Pressure, High-Paying Jobs?," CESifo Working Paper Series 10102, CESifo.
    3. Otálvaro, Susana & Gallego, Juan Miguel & Rodríguez-Lesmes, Paul, 2023. "De-normalizing smoking in urban areas: Public smoking bans and smoking prevalence," Economics & Human Biology, Elsevier, vol. 48(C).
    4. Markus Nagler & Johannes Rincke & Erwin Winkler, 2022. "How Much Do Workers Actually Value Working from Home?," CESifo Working Paper Series 10073, CESifo.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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