Smoking and wage rates – Evidence from Japanese panel data

Yawen Sun

Japan and the World Economy, 2019, vol. 49, issue C, 138-150

Abstract: This paper analyzes smoking behavior and its effects on wage rate. It is widely known that smoking has negative health effects and to discourage the practice, governments frequently implement policies such as tax increases and restrictions on public smoking. To evaluate these policies, it is necessary to understand the economic benefits and costs of reducing the number of smokers. We conduct a panel data analysis while controlling for unobserved heterogeneity and show that smoking is not the main factor causing observed wage differentials between smokers and non-smokers in Japan.

Keywords: Smoking; Wage; Panel data (search for similar items in EconPapers)
JEL-codes: C23 I19 J30 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:49:y:2019:i:c:p:138-150

DOI: 10.1016/j.japwor.2018.10.002

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