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The Economic Cost of Smoking: Differences in Wages between Smokers and Non-smokers in Russia

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  • Lokshin, Mikhail
  • Sajaia, Zurab

Abstract

This paper estimates the economic losses related to the negative effect of smoking on wages in Russia. Data from the 2006 Living Standards Survey of Russia’s Tomsk region are used to jointly estimate a system of three equations: the smoking decision equation and two separate equations for wages of smokers and non-smokers. The results show that, after controlling for observed characteristics and taking into account unobserved heterogeneity in personal characteristics, smoking has a substantial negative impact on wages of working men in Russia. It has been also shown that the effect of smoking on wages differs between males and females.

Suggested Citation

  • Lokshin, Mikhail & Sajaia, Zurab, 2007. "The Economic Cost of Smoking: Differences in Wages between Smokers and Non-smokers in Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 6(2), pages 60-80.
    • Handle: RePEc:ris:apltrx:0146
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    References listed on IDEAS

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    Cited by:

    1. Ermakov, Stepan, 2012. "The impact of smoking intensity on wages in Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 25(1), pages 70-94.

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    More about this item

    Keywords

    smoking; differences in wages;

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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