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Is Employment Discrimination Based On Tobacco Use Efficient?

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  • IAN IRVINE
  • HAI V. NGUYEN

Abstract

type="main" xml:lang="en"> Numerous employers in over 20 U.S. states currently discriminate legally against smokers in their hiring policies. We analyze the cost of being a smoker, measured in annual hospital days, and compare this with the cost of being a former smoker, the cost of being obese, and the cost of a variety of other medical conditions, relative to the cost of being a never smoker, using three large recent surveys each having in excess of one hundred thousand observations. The paper also explores the cost of former smokers as determined by the number of years since quitting. Smokers as a whole are not found to be the most costly employees. Furthermore, health costs vary dramatically among smokers of different duration and intensity. As a consequence, our results question the efficiency of such discrimination. (JEL I10, I18, J71, J7)

Suggested Citation

  • Ian Irvine & Hai V. Nguyen, 2014. "Is Employment Discrimination Based On Tobacco Use Efficient?," Contemporary Economic Policy, Western Economic Association International, vol. 32(4), pages 752-768, October.
    • Handle: RePEc:bla:coecpo:v:32:y:2014:i:4:p:752-768
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    File URL: http://hdl.handle.net/10.1111/coep.12044
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    References listed on IDEAS

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    Cited by:

    1. MORIKAWA Masayuki, 2018. "Smoking, Obesity, and Labor Market Outcomes: Evidence from Japan," Discussion papers 18023, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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