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The impact of health status and smoking behaviour on Indonesian labor wage

Author

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  • Heni Wahyuni

    (Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, Indonesia)

Abstract

In this research, we try to estimate the relationship between health status and smoking behaviour on the labour wage in Indonesia. We investigate using Indonesian Family Life Survey (IFLS) data and two-step Heckman correction to deal with sample selection bias. We found that there is significance relationships between all socioeconomic variables and wage both for smokers and nonsmokers. The interesting thing is that the effect on wage is less for smokers than non-smokers.

Suggested Citation

  • Heni Wahyuni, 2016. "The impact of health status and smoking behaviour on Indonesian labor wage," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 8(1), pages 1-12, April.
    • Handle: RePEc:uii:journl:v:8:y:2016:i:1:p:1-12
    DOI: 10.20885/ejem.vol8.iss1.art1
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    References listed on IDEAS

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    Cited by:

    1. Kartseva, M. & Kuznetsova, P., 2022. "Stay healthy - will the rest follow? The impact of health on wages in Russia," Journal of the New Economic Association, New Economic Association, vol. 57(5), pages 55-70.

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    More about this item

    Keywords

    health status; smoking behaviour; wage; two-step Heckman correction;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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