SMOKE‐FREE LAWS AND EMPLOYEE TURNOVER

Eric Thompson, Ellen J. Hahn, Glenn Blomquist, John Garen, Don Mullineaux, Nola Ogunro and Mary K. Rayens

Contemporary Economic Policy, 2008, vol. 26, issue 3, 351-359

Abstract: This study examines how smoke‐free laws influence turnover among restaurant workers. The study uses a unique data set of payroll records of a franchisee of a national full‐service restaurant chain operating 23 restaurants in the state of Arizona, a state where several communities have adopted smoke‐free laws. Municipal smoke‐free laws did not, on average, have a statistically significant effect on the probability of employee separation in the years after implementation. These results suggest that training costs associated with employee turnover would not rise for full‐service restaurants in municipalities that adopt smoke‐free laws. (JEL I18, J63)

Date: 2008
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