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Non‐pecuniary returns to higher education: the effect on smoking intensity in the UK

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  • Massimiliano Bratti
  • Alfonso Miranda

Abstract

This paper investigates whether higher education (HE) produces non‐pecuniary returns via a reduction in the intensity of consumption of health‐damaging substances. In particular, it focuses on current smoking intensity of the British individuals sampled in the 29‐year follow‐up survey of the 1970 British Cohort Study. We estimate endogenous dummy ordinal response models for cigarette consumption and show that HE is endogenous with respect to smoking intensity and that even when endogeneity is accounted for, HE is found to have a strong negative effect on smoking intensity. Moreover, pecuniary channels, such as occupation and income, mediate only a minor part of the effect of HE. Our results are robust to modelling individual self‐selection into current smoking participation (at age 29) and to estimating a dynamic model in which past smoking levels affect current smoking levels. Copyright © 2009 John Wiley & Sons, Ltd.

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  • Massimiliano Bratti & Alfonso Miranda, 2010. "Non‐pecuniary returns to higher education: the effect on smoking intensity in the UK," Health Economics, John Wiley & Sons, Ltd., vol. 19(8), pages 906-920, August.
    • Handle: RePEc:wly:hlthec:v:19:y:2010:i:8:p:906-920
    DOI: 10.1002/hec.1529
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    2. Donald S. Kenkel & Maximilian D. Schmeiser & Carly Urban, 2014. "Is Smoking Inferior?: Evidence from Variation in the Earned Income Tax Credit," Journal of Human Resources, University of Wisconsin Press, vol. 49(4), pages 1094-1120.
    3. Quinones, Esteban J. & Barham, Bradford L., 2018. "Endogenous Selection, Migration and Occupation Outcomes for Rural Southern Mexicans," Staff Paper Series 587, University of Wisconsin, Agricultural and Applied Economics.
    4. Helmut Rainer & Ian Smith, 2012. "Education, Communication and Wellbeing: An Application to Sexual Satisfaction," Kyklos, Wiley Blackwell, vol. 65(4), pages 581-598, November.
    5. Alfonso Miranda & Sophia Rabe-Hesketh, 2006. "Maximum likelihood estimation of endogenous switching and sample selection models for binary, ordinal, and count variables," Stata Journal, StataCorp LP, vol. 6(3), pages 285-308, September.
    6. Annette Alstadsæter & Hans Henrik Sievertsen, 2009. "The Consumption Value of Higher Education," CESifo Working Paper Series 2871, CESifo.
    7. Cottini Elena & Ghinetti Paolo, 2017. "Is it the Way You Live or the Job You Have? Health Effects of Lifestyles and Working Conditions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(3), pages 1-20, July.
    8. Nakamura, Ryota & Yao, Ying, 2021. "Does Restricting the Availability of Cigarettes Reduce Smoking?," Discussion paper series HIAS-E-108, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    9. Michael J. Peel, 2014. "Addressing unobserved endogeneity bias in accounting studies: control and sensitivity methods by variable type," Accounting and Business Research, Taylor & Francis Journals, vol. 44(5), pages 545-571, October.

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    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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