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The Effect of Smoking Bans on Bars and Restaurants: An Analysis of Changes in Employment

Author

Listed:
  • Adams Scott

    () (University of Wisconsin-Milwaukee)

  • Cotti Chad D.

    () (University of South Carolina)

Abstract

Many communities and several states prohibit smoking in bars or restaurants. Using county-level data on employment from across the US, we find that communities where smoking is banned experience reductions in bar employment compared with counties that allow smoking. Smoking bans have a larger detrimental impact on bars in geographic areas with a high prevalence of smokers. The relative effect on restaurant employment is neutral or mildly positive. The positive effects are concentrated in areas with fewer smokers. We also find that bans have a positive effect on restaurant employment in warmer regions of the country, especially during the cooler winter months, and in the summer in colder regions. This suggests the prevalence of outdoor seating might influence the policy's effect.

Suggested Citation

  • Adams Scott & Cotti Chad D., 2007. "The Effect of Smoking Bans on Bars and Restaurants: An Analysis of Changes in Employment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-34, February.
  • Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:12
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    Citations

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    Cited by:

    1. Michael R. Pakko, 2006. "On the economic analysis of smoking bans," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 115-130.
    2. Ahlfeldt Gabriel M. & Maennig Wolfgang, 2010. "Impact of Non-smoking Ordinances on Hospitality Revenues: The Case of Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(5), pages 506-521, October.
    3. repec:bla:jindec:v:65:y:2017:i:3:p:559-584 is not listed on IDEAS
    4. Michael Kvasnicka & Harald Tauchmann, 2010. "Much Ado About Nothing? – Smoking Bans and Germany’s Hospitality Industry," Ruhr Economic Papers 0172, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Bharadwaj, Prashant & Johnsen, Julian V. & Løken, Katrine V., 2014. "Smoking bans, maternal smoking and birth outcomes," Journal of Public Economics, Elsevier, vol. 115(C), pages 72-93.
    6. Millner, Antony & Ollivier, Hélène & Simon, Leo, 2014. "Policy experimentation, political competition, and heterogeneous beliefs," Journal of Public Economics, Elsevier, vol. 120(C), pages 84-96.
    7. Adams, Scott & Cotti, Chad, 2008. "Drunk driving after the passage of smoking bans in bars," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1288-1305, June.
    8. Jérôme Adda & Francesca Cornaglia, 2010. "The Effect of Bans and Taxes on Passive Smoking," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 1-32, January.
    9. repec:zbw:rwirep:0172 is not listed on IDEAS
    10. Marianne P. Bitler & Christopher S. Carpenter & Madeline Zavodny, 2010. "Effects of venue‐specific state clean indoor air laws on smoking‐related outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 19(12), pages 1425-1440, December.
    11. Kvasnicka, Michael & Tauchmann, Harald, 2012. "Much ado about nothing? Smoking bans and Germany's hospitality industry," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 4539-4551.
    12. Tami Gurley-Calvez & George W. Hammond & Randall A. Childs, 2014. "Labor Market Impacts Of Smoking Regulations On The Restaurant Industry," Contemporary Economic Policy, Western Economic Association International, vol. 32(4), pages 681-694, October.
    13. Christian Bauer & Jörg Lingens, 2008. "The Strategic Effects of Smoking Bans," Working Papers 055, Bavarian Graduate Program in Economics (BGPE).
    14. Silvia Tiezzi, 2009. "The Economic Impact of Clean Indoor Air Laws: A Review of Alternative Approaches and of Empirical findings," Department of Economics University of Siena 570, Department of Economics, University of Siena.
    15. Bree L. Dority & Mary G. Mcgarvey & Eric C. Thompson & Jyothsna Sainath, 2013. "Local And Statewide Smoke-Free Laws In Nebraska: The Effects On Keno Establishments," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 549-564, July.
    16. Thomas A. Garrett & Michael R. Pakko, 2009. "Casino revenue and the Illinois smoking ban," Working Papers 2009-027, Federal Reserve Bank of St. Louis.
    17. Jerome Adda & Samuel Berlinski & V. Bhaskar & Stephen Machin, 2009. "Market regulation and firm performance: the case of smoking bans in the UK," IFS Working Papers W09/13, Institute for Fiscal Studies.
    18. Kim, Dohyung & Yörük, Barış K., 2015. "The impact of restaurant smoking bans on dining out expenditures: Evidence from panel data," Journal of Urban Economics, Elsevier, vol. 88(C), pages 38-49.
    19. Silda Nikaj & Joshua J. Miller & John Tauras, 2016. "The Over Time Impacts Of Smoke Free Air Ordinances In Texas," NBER Working Papers 22352, National Bureau of Economic Research, Inc.
    20. Annette Hofmann & Martin Nell, 2012. "Smoking bans and the secondhand smoking problem: an economic analysis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(3), pages 227-236, June.
    21. Joshua Glonek, 2013. "The Economic Effect Of Banning Smoking In Wisconsin'S Bars And Restaurants," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 565-579, July.
    22. Michael R. Pakko, 2008. "The economic impact of a smoking ban in Columbia, Missouri: an analysis of sales tax data for the first year," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 30-40.
    23. Jérôme Adda & Samuel Berlinski & Stephen Machin, 2012. "Market Regulation and Firm Performance: The Case of Smoking Bans in the United Kingdom," Journal of Law and Economics, University of Chicago Press, vol. 55(2), pages 365-391.

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