Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/91929 
Authors: 
Year of Publication: 
2007
Series/Report no.: 
ISER Working Paper Series No. 2007-31
Publisher: 
University of Essex, Institute for Social and Economic Research (ISER), Colchester
Abstract: 
This work investigates the effect of smoking on wages for male workers using panel data from Britain for the period of 1991-2005. The strong negative correlation of smoking and wages found in a crosssectional analysis reduces substantially when accounting for unobserved individual heterogeneity using Fixed Effects estimation. I find a statistically significant wage penalty that is causally due to smoking of about -2% for smokers over those who quit. Further analysis indicates, however, that the negative effect might be underestimated when comparing with those who never started smoking or quit a long time ago.
Document Type: 
Working Paper

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