Effect of smoking and other economic variables on wages in the Euro Area

Eric Bondzie

MPRA Paper from University Library of Munich, Germany

Abstract: The smoking effects on wages has been examined in this work using different econometric methodologies with the use of European Community Household Panel (ECHP) datasets. We employ econometric tools like Instrumental Variable technique, Heckman correction factor, Endogenous Switching and Matching estimates. The initial results from regression estimates (OLS and IV methods) revealed that the wage gap between smokers and non-smokers ranges 1% to 22.7%. Moreover, endogenous switching and matching estimator also showed a negative average treatment effect of approximately 47% and 4.3% to 6.9% respectively. Thus smokers observed less wage effects is explained in part by real effects on their health status and a measure of unobserved preferences.

Keywords: Smoking; Wages differentials; Econometric Approaches and Euro Area. (search for similar items in EconPapers)
JEL-codes: C18 I12 J31 O52 (search for similar items in EconPapers)
Date: 2016-02-03
New Economics Papers: this item is included in nep-hea
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Effect of Smoking and other Economic Variables on Wages in the Euro Area (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:69230

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