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Effect of Smoking and other Economic Variables on Wages in the Euro Area

Author

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  • Eric A. BONDZIE

    (Università Cattolica del Sacro Cuore-Milan, Italy.)

Abstract

The smoking effects on wages has been examined in this work using different econometric methodologies with the use of European Community Household Panel (ECHP) datasets. We employ econometric tools like Instrumental Variable technique, Heckman correction factor, Endogenous Switching and matching estimates. The initial results from regression estimates (OLS and IV methods) revealed that the wage gap between smokers and non-smokers ranges 1% to 22.7%. Moreover, endogenous switching and matching estimator also showed a negative average treatment effect of approximately 47% and 4.3% to 6.9% respectively. Thus smokers observed less wage effects is explained in part by real effects on their health status and a measure of unobserved preferences.

Suggested Citation

  • Eric A. BONDZIE, 2016. "Effect of Smoking and other Economic Variables on Wages in the Euro Area," Journal of Economics Bibliography, KSP Journals, vol. 3(1), pages 38-52, March.
    • Handle: RePEc:ksp:journ6:v:3:y:2016:i:1:p:38-52
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    Cited by:

    1. Yao, Yao & Chen, George S. & Salim, Ruhul & Yu, Xiaojun, 2018. "Schooling returns for migrant workers in China: Estimations from the perspective of the institutional environment in a rural setting," China Economic Review, Elsevier, vol. 51(C), pages 240-256.
    2. Kristijan Fidanovski & Biljana Jovanovikj & Nóra Kungl & Hana Ross, 2025. "Easier to afford, more likely to be smoked? Marlboro indices show higher cigarette affordability in the South and East of Europe," wiiw Policy Notes 101, The Vienna Institute for International Economic Studies, wiiw.
    3. Demirgüç-Kunt, Asli & Torre, Iván, 2022. "Measuring human capital in middle income countries," Journal of Comparative Economics, Elsevier, vol. 50(4), pages 1036-1067.

    More about this item

    Keywords

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    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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