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More Bad News for Smokers? The Effects of Cigarette Smoking on Wages

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  • Phillip B. Levine
  • Tara A. Gustafson
  • Ann D. Velenchik

Abstract

Using National Longitudinal Survey of Youth data, the authors examine the effect of smoking on wages. Their analysis controls for differences in individual charaeteristics that may be correlated with both smoking and wages, including unobservable person-specific characteristics that are constant over time, and unobservable characteristics that are constant within a family. Estimates from alternative specifications indicate that smoking reduced wages by roughly 4–8%. Empirical tests of three potential explanations for this finding yield no conclusive results.

Suggested Citation

  • Phillip B. Levine & Tara A. Gustafson & Ann D. Velenchik, 1997. "More Bad News for Smokers? The Effects of Cigarette Smoking on Wages," ILR Review, Cornell University, ILR School, vol. 50(3), pages 493-509, April.
    • Handle: RePEc:sae:ilrrev:v:50:y:1997:i:3:p:493-509
    DOI: 10.1177/001979399705000307
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    References listed on IDEAS

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    1. Charles A. Register & Donald R. Williams, 1992. "Labor Market Effects of Marijuana and Cocaine Use among Young Men," ILR Review, Cornell University, ILR School, vol. 45(3), pages 435-448, April.
    2. Keeler, Theodore E. & Hu, Teh-Wei & Barnett, Paul G. & Manning, Williard G., 1993. "Taxation, regulation, and addiction: A demand function for cigarettes based on time-series evidence," Journal of Health Economics, Elsevier, vol. 12(1), pages 1-18, April.
    3. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    4. Andrew M. Gill & Robert J. Michaels, 1992. "Does Drug Use Lower Wages?," ILR Review, Cornell University, ILR School, vol. 45(3), pages 419-434, April.
    5. Phillip B. Levine & Tara A. Gustafson & Ann D. Velenchik, 1995. "More Bad News for Smokers? The Effects of Cigarette Smoking on Labor Market Outcomes," NBER Working Papers 5270, National Bureau of Economic Research, Inc.
    6. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-1381, September.
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