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http://hdl.handle.net/10419/20400
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| Title: | | Substance use and earnings : the case of smokers in Germany  |
| Authors: | | Schwarze, Johannes Heineck, Guido |
| Issue Date: | | 2003 |
| Series/Report no.: | | IZA Discussion paper series 743 |
| Abstract: | | This paper examines the effect of smoking behavior on earnings. Using data from the GSOEP, both cross-sectional and longitudinal models are estimated separately for males and females. Results for the cross-sectional models confirm prior analyses inasmuch as smoking has a negative effect on earnings for males. However, applying fixed-effects estimation, this effect is found to be inverted for men aged 25 to 35 years compared to their non-smoking counterparts. That is, controlling for unobservable individual heterogeneity, the result implies that male smokers are individuals with higher time preference rates. At the early stage of the age-earnings course higher earnings are therefore found for smokers because young male non-smokers only are about to start off their occupational career. Women?s earnings, however, are not affected by smoking behavior. |
| Subjects: | | smoking earnings regressions |
| JEL: | | I12 J30 J70 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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