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Returns to Education and Smoking: Evidence from Germany

Julia Reilich
Authors registered in the RePEc Author Service: Julia Neuhaus ()

No 103, Volkswirtschaftliche Diskussionsbeiträge from Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät

Abstract: Looking at smoking-behavior it can be shown that there are differences concerning the time-preference-rate. Therefore this has an effect on the optimal schooling decision in the way that we appear a lower average human capital level for smokers. According to a higher time-preference-rate additionally we suppose a higher return to education for smokers who go further on education. With our empirical findings we can confirm the presumptions. We use interactions-terms to regress the average rate of return with IV. Therefore we obtain that smokers have a significantly higher average return to education than non-smokers.

Date: 2011-09
New Economics Papers: this item is included in nep-edu, nep-hea, nep-hrm and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:pot:vwldis:103

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