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Deutsches Institut für Wirtschaftsforschung (DIW), Berlin >
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http://hdl.handle.net/10419/18547
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| Title: | | Biases in Estimates of the Smoking Wage Penalty  |
| Authors: | | Anger, Silke Kvasnicka, Michael |
| Issue Date: | | 2006 |
| Series/Report no.: | | DIW-Diskussionspapiere 654 |
| Abstract: | | Empirical studies on the earnings effects of tobacco use have found significant wage penalties attached to smoking. We produce evidence that suggests that these estimates are significantly upward biased. The bias arises from a general failure in the literature to control for the past smoking behavior of individuals. 2SLS earnings estimates show that the smoking wage penalty is reduced by as much as a third, if past smoking of individuals is controlled for. Our results also point to significant wage gains for individuals that quit smoking, a finding that is of substantial interest, given the lack of evidence on the earnings effects of smoking cessation. |
| Subjects: | | Smoking wages earnings regressions |
| JEL: | | C51 I19 J31 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
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| dp654.pdf | | 241.48 kB | Adobe PDF |
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