The smoking wage penalty in the United Kingdom
Publikation: Arbeits- oder Diskussionspapiere und Berichte › Arbeits- oder Diskussionspapiere
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Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg, 2008. (Working paper series in economics; Nr. 96).
Publikation: Arbeits- oder Diskussionspapiere und Berichte › Arbeits- oder Diskussionspapiere
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TY - UNPB
T1 - The smoking wage penalty in the United Kingdom
AU - Braakmann, Nils
N1 - Literaturverz. S. 13 - 14.
PY - 2008
Y1 - 2008
N2 - This paper considers the impact of tobacco consumption on wages in the UK using data from fifteen waves of the British Household Panel Survey. Considering both overall smoker status as well as the number of cigarettes consumed, we provide estimates for the smoking wage penalty using standard regression methods, including panel estimators for fixed effects and panel instrumental variable estimators. Furthermore, we analyse the impact of stopping and starting to smoke relative to permanent smokers and non-smokers by Mahalanobis-matching. In the cross-section, we find a rather large wage penalty for smokers of about 4%. However, panel estimator and IV results show relatively few support for hypotheses linking the smoking wage penalty to either lower productivity of smokers, be it health related or not, or discrimination. Matching results suggest that starting or stopping to smoke does not affect later earnings relative to remaining either smoker or non-smoker.
AB - This paper considers the impact of tobacco consumption on wages in the UK using data from fifteen waves of the British Household Panel Survey. Considering both overall smoker status as well as the number of cigarettes consumed, we provide estimates for the smoking wage penalty using standard regression methods, including panel estimators for fixed effects and panel instrumental variable estimators. Furthermore, we analyse the impact of stopping and starting to smoke relative to permanent smokers and non-smokers by Mahalanobis-matching. In the cross-section, we find a rather large wage penalty for smokers of about 4%. However, panel estimator and IV results show relatively few support for hypotheses linking the smoking wage penalty to either lower productivity of smokers, be it health related or not, or discrimination. Matching results suggest that starting or stopping to smoke does not affect later earnings relative to remaining either smoker or non-smoker.
KW - Economics
KW - Smoking wage penalty
KW - United Kingdom
KW - Discrimination
M3 - Working papers
T3 - Working paper series in economics
BT - The smoking wage penalty in the United Kingdom
PB - Institut für Volkswirtschaftslehre der Universität Lüneburg
CY - Lüneburg
ER -