More Bad News for Smokers? The Effects of Cigarette Smoking on Labor Market Outcomes

Phillip Levine, Tara A. Gustafson and Ann Velenchik

No 5270, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper uses data from the National Longitudinal Survey of Youth to examine the effect of smoking on wages and employment. The panel nature and household structure of these data enable us to implement methods to account for differences in observed and unobserved individual characteristics that may be correlated with both smoking and wages. Changes in wages associated with changes in smoking behavior and models that utilize sibling comparisons are estimated to address the potential heterogeneity problem. Estimates from alternative specifications all indicate that smoking reduces wages by roughly 4-8%. No robust, statistically significant effect on employment is observed.

Date: 1995-09
Note: EH LS
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Published as Industrial and Labor Relations Review (April 1997): 493-509.

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