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Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans

  • Brodeur, Abel


    (University of Ottawa)

This paper investigates the effects of local smoking bans on different out-comes using county and time variation over the last 20 years in the US. First, I find no evidence that local smoking bans in bars, restaurants and workplaces decrease the prevalence of smoking. The estimates are very small and not statistically significant. Well-being is also affected by these policies: public smoking bans make smokers who do not quit more satisfied with their life. I verify the robustness of this result throughout, and validate my findings with two distinct data sources. I discuss and test the mechanisms behind this seemingly paradoxical relationship. The evidence suggests that smokers adapt to this policy since the impact on satisfaction is negative just before the implementation and positive afterward. Last, I find evidence that smokers do not favor the implementation of smoking bans. Yet, once they are exposed to a public smoking ban, they are less-opposed to those policies. Together the evidence suggests that current smokers are time-inconsistent and benefit from smoking policies.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7357.

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Length: 49 pages
Date of creation: Apr 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7357
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  1. Simon Moore, 2009. "The nonpecuniary effects of smoking cessation: happier smokers smoke less," Applied Economics Letters, Taylor & Francis Journals, vol. 16(4), pages 395-398.
  2. Andrew E. Clark & Fabrice Etilé, 2010. "Happy House: Spousal Weight and Individual Well-Being," SOEPpapers on Multidisciplinary Panel Data Research 349, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Jérôme Adda & Francesca Cornaglia, 2009. "The Effect of Bans and Taxes on Passive Smoking," CEP Discussion Papers dp0950, Centre for Economic Performance, LSE.
  4. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
  5. Ted O'Donoghue & Matthew Rabin, 1996. "Doing It Now or Later," Discussion Papers 1172, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  6. Timothy Hinks and Andreas Katsaros & Andreas Katsaros, 2010. "Smoking Behaviour and Life Satisfaction: Evidence from the UK Smoking Ban," Working Papers 1019, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  7. Odermatt, Reto & Stutzer, Alois, 2014. "Smoking Bans, Cigarette Prices and Life Satisfaction," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100559, Verein für Socialpolitik / German Economic Association.
  8. Andrew Clark & Fabrice Etilé, 2003. "Don't Give up on me Baby: Spousal Correlation in Smoking Behaviour," DELTA Working Papers 2003-25, DELTA (Ecole normale supérieure).
  9. Jérôme Adda & Francesca Cornaglia, 2006. "Taxes, Cigarette Consumption, and Smoking Intensity," American Economic Review, American Economic Association, vol. 96(4), pages 1013-1028, September.
  10. Buddelmeyer, Hielke & Wilkins, Roger, 2005. "The Effects of Smoking Ban Regulations on Individual Smoking Rates," IZA Discussion Papers 1737, Institute for the Study of Labor (IZA).
  11. repec:oup:qjecon:v:116:y:2001:i:4:p:1261-1303 is not listed on IDEAS
  12. Origo, Federica & Lucifora, Claudio, 2010. "The Effect of Comprehensive Smoking Bans in European Workplaces," IZA Discussion Papers 5290, Institute for the Study of Labor (IZA).
  13. R. Veenhoven, 2008. "Healthy happiness: effects of happiness on physical health and the consequences for preventive health care," Journal of Happiness Studies, Springer, vol. 9(3), pages 449-469, September.
  14. Bruno S. Frey & Alois Stutzer, 2001. "What Can Economists Learn from Happiness Research?," CESifo Working Paper Series 503, CESifo Group Munich.
  15. Gary S. Becker & Kevin M. Murphy, 1986. "A Theory of Rational Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.
  16. Graham, Carol & Eggers, Andrew & Sukhtankar, Sandip, 2004. "Does happiness pay?: An exploration based on panel data from Russia," Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 319-342, November.
  17. B. Douglas Bernheim & Antonio Rangel, 2004. "Addiction and Cue-Triggered Decision Processes," American Economic Review, American Economic Association, vol. 94(5), pages 1558-1590, December.
  18. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
  19. Adda, Jérôme & Cornaglia, Francesca, 2006. "The Effect of Taxes and Bans on Passive Smoking," IZA Discussion Papers 2191, Institute for the Study of Labor (IZA).
  20. Daniel Kahneman & Alan B. Krueger, 2006. "Developments in the Measurement of Subjective Well-Being," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 3-24, Winter.
  21. Rafael Di Tella & Robert MacCulloch, 2006. "Some Uses of Happiness Data in Economics," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 25-46, Winter.
  22. Boyes, William J & Marlow, Michael L, 1996. " The Public Demand for Smoking Bans," Public Choice, Springer, vol. 88(1-2), pages 57-67, July.
  23. repec:oup:qjecon:v:119:y:2004:i:1:p:249-275 is not listed on IDEAS
  24. Frederica Origo & Claudio Lucifora, 2010. "Smoking Bans in European Workplaces," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 8(3), pages 36-42, October.
  25. Philippe Jehiel & Andrew Lilico, 2010. "Smoking Today and Stopping Tomorrow: a Limited Foresight Perspective," CESifo Economic Studies, CESifo, vol. 56(2), pages 141-164, June.
  26. Hendrik Jürges, 2004. "The Welfare Costs of Addiction," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 124(3), pages 327-353.
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