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Wages, Alcohol Use, and Smoking: Simultaneous Estimates

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  • M. Christopher Auld

    (University of Calgary)

Abstract

This paper estimates a simultaneous model of moderate and problem drinking, smoking, and wages using a random sample of employed Canadian men. The results indicate that sample selection into alcohol and tobacco use is not negligible. With all else in the system held constant, moderate and heavy drinking are both associated with considerably higher wages than abstention from drinking, whereas smoking is associated with lower wages. Allowing for feedback from wages to substance use is important: if wages are excluded from the substance use equations, the premium to heavy drinking disappears, the premium for moderate drinking rises, and the penalty to smoking is diminished.

Suggested Citation

  • M. Christopher Auld, 1998. "Wages, Alcohol Use, and Smoking: Simultaneous Estimates," HEW 9808001, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwphe:9808001
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    References listed on IDEAS

    as
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    Cited by:

    1. van Ours, J.C., 2005. "Cannabis, Cocaine and the Wages of Prime Age Males," Other publications TiSEM 1b74e15f-3dda-4ac9-bbc0-d, Tilburg University, School of Economics and Management.
    2. van Ours, Jan C., 2002. "A pint a day raises a man's pay; but smoking blows that gain away," IZA Discussion Papers 473, Institute of Labor Economics (IZA).
    3. van Ours, Jan C., 2004. "A pint a day raises a man's pay; but smoking blows that gain away," Journal of Health Economics, Elsevier, vol. 23(5), pages 863-886, September.
    4. Kim, Vitally, 2010. "Level of alcohol consumption and worker’s labor market position. Multivariate probit model approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 18(2), pages 53-77.
    5. Ali Palali, 2017. "Early Smoking, Education, and Labor Market Performance," De Economist, Springer, vol. 165(3), pages 225-270, September.
    6. Palali, Ali, 2015. "Early Smoking, Education, and Labor Market Performance," Discussion Paper 2015-033, Tilburg University, Center for Economic Research.
    7. Palali, Ali, 2017. "Early smoking, education, and labor market performance," Other publications TiSEM a3763677-b112-4fea-a9f3-5, Tilburg University, School of Economics and Management.
    8. Jan C. Van Ours, 2007. "The Effects of Cannabis Use on Wages of Prime‐age Males," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(5), pages 619-634, October.
    9. Ziggy MacDonald & Michael Shields, "undated". "The Impact of Alcohol Use on Occupational Attainment and Wages," Discussion Papers in Public Sector Economics 98/8, Division of Economics, School of Business, University of Leicester.
    10. 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.
    11. Palali, Ali, 2015. "Early Smoking, Education, and Labor Market Performance," Other publications TiSEM b51be057-cb0e-445a-a428-4, Tilburg University, School of Economics and Management.
    12. Dummann, Kathrin, 2008. "Retirement saving and attitude towards financial intermediaries: Evidence for Germany," Thuenen-Series of Applied Economic Theory 99, University of Rostock, Institute of Economics.

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    More about this item

    Keywords

    alcohol; tobacco; simultaneous equations; maximum simulated likelihood;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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