IDEAS home Printed from https://ideas.repec.org/p/kee/kerpuk/2006-04.html
   My bibliography  Save this paper

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

Author

Listed:
  • Alfonso Miranda

    (Keele University, Centre for Economic Research and School of Economic and Management Studies)

  • Massimiliano Bratti

    (Department of Economics, Business and Statistics, University of Milan)

Abstract

In this paper we investigate whether higher education (HE) produces non-pecuniary returns via a reduction in the consumption of health-damaging substances. In particular, the paper focuses on studying the smoking intensity of British individuals. We use data on current smokers from the 1970 British Cohort Study and estimate endogenous switching count models for cigarette consumption. Results show that HE is endogenous with smoking. Once endogeneity is controlled for, HE is found to have a higher negative effect on smoking than in models where it is treated as exogenous.

Suggested Citation

  • Alfonso Miranda & Massimiliano Bratti, 2006. "Non-pecuniary returns to higher education: The effect on smoking intensity in the UK," Keele Economics Research Papers KERP 2006/04, Centre for Economic Research, Keele University.
    • Handle: RePEc:kee:kerpuk:2006/04
    as

    Download full text from publisher

    File URL: http://www.keele.ac.uk/depts/ec/wpapers/kerp0604.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Emery, Sherry & White, Martha M. & Pierce, John P., 2001. "Does cigarette price influence adolescent experimentation?," Journal of Health Economics, Elsevier, vol. 20(2), pages 261-270, March.
    2. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2010. "Are Risk Aversion and Impatience Related to Cognitive Ability?," American Economic Review, American Economic Association, vol. 100(3), pages 1238-1260, June.
    3. Victor R. Fuchs, 1982. "Economic Aspects of Health," NBER Books, National Bureau of Economic Research, Inc, number fuch82-1.
    4. Gary S. Becker & Casey B. Mulligan, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 729-758.
    5. Kenkel, Donald S, 1991. "Health Behavior, Health Knowledge, and Schooling," Journal of Political Economy, University of Chicago Press, vol. 99(2), pages 287-305, April.
    6. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages 82-99, February.
    7. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
    8. Grossman, Michael, 2006. "Education and Nonmarket Outcomes," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 10, pages 577-633, Elsevier.
    9. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    10. Terza, Joseph V., 1998. "Estimating count data models with endogenous switching: Sample selection and endogenous treatment effects," Journal of Econometrics, Elsevier, vol. 84(1), pages 129-154, May.
    11. Donald Kenkel & Dean Lillard & Alan Mathios, 2006. "The Roles of High School Completion and GED Receipt in Smoking and Obesity," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 635-660, July.
    12. Robert H. Haveman & Barbara L. Wolfe, 2002. "Social and nonmarket benefits from education in an advanced economy," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 47(Jun), pages 97-142.
    13. Clark, Andrew & Etile, Fabrice, 2002. "Do health changes affect smoking? Evidence from British panel data," Journal of Health Economics, Elsevier, vol. 21(4), pages 533-562, July.
    14. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    15. Arnaud Chevalier, 2004. "Parental Education and Childs Education: A Natural Experiment," CEE Discussion Papers 0040, Centre for the Economics of Education, LSE.
    16. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    17. Laura Blow & Andrew Leicester & Frank Windmeijer, 2005. "Parental income and children's smoking behaviour: evidence from the British Household Panel Survey," IFS Working Papers W05/10, Institute for Fiscal Studies.
    18. Sander, William, 1995. "Schooling and Quitting Smoking," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 191-199, February.
    19. Adriana Lleras-Muney, 2005. "The Relationship Between Education and Adult Mortality in the United States," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 189-221.
    20. Martin Forster & Andrew M. Jones, 2003. "Corrigendum: The role of tobacco taxes in starting and quitting smoking: duration analysis of British data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 166(3), pages 441-442, October.
    21. Sophia Rabe-Hesketh & Anders Skrondal & Andrew Pickles, 2002. "Reliable estimation of generalized linear mixed models using adaptive quadrature," Stata Journal, StataCorp LP, vol. 2(1), pages 1-21, February.
    22. Labeaga, Jose M., 1999. "A double-hurdle rational addiction model with heterogeneity: Estimating the demand for tobacco," Journal of Econometrics, Elsevier, vol. 93(1), pages 49-72, November.
    23. Mark C. Berger & J. Paul Leigh, 1989. "Schooling, Self-Selection, and Health," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 433-455.
    24. Christian Bantle & John P. Haisken-DeNew, 2002. "Smoke Signals: The Intergenerational Transmission of Smoking Behavior," Discussion Papers of DIW Berlin 277, DIW Berlin, German Institute for Economic Research.
    25. repec:bla:econom:v:68:y:2001:i:270:p:137-56 is not listed on IDEAS
    26. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
    27. Powell, Lisa M. & Tauras, John A. & Ross, Hana, 2005. "The importance of peer effects, cigarette prices and tobacco control policies for youth smoking behavior," Journal of Health Economics, Elsevier, vol. 24(5), pages 950-968, September.
    28. 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.
    29. Massimiliano BRATTI & Robin NAYLOR & Jeremy SMITH, 2008. "Heterogeneities in the returns to degrees: evidence from the British cohort study 1970," Departmental Working Papers 2008-40, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    30. Scott Adams, 2002. "Educational Attainment and Health: Evidence from a Sample of Older Adults," Education Economics, Taylor & Francis Journals, vol. 10(1), pages 97-109.
    31. Arendt, Jacob Nielsen, 2005. "Does education cause better health? A panel data analysis using school reforms for identification," Economics of Education Review, Elsevier, vol. 24(2), pages 149-160, April.
    32. Tarani Chandola & Paul Clarke & J. N. Morris & David Blane, 2006. "Pathways between education and health: a causal modelling approach," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(2), pages 337-359, March.
    33. Donald S. Kenkel & Joseph V. Terza, 2001. "The effect of physician advice on alcohol consumption: count regression with an endogenous treatment effect," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(2), pages 165-184.
    34. Shane Frederick, 2005. "Cognitive Reflection and Decision Making," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 25-42, Fall.
    35. Sander, William, 1995. "Schooling and smoking," Economics of Education Review, Elsevier, vol. 14(1), pages 23-33, March.
    36. Catherine Ross & John Mirowsky, 1999. "Refining the association between education and health: The effects of quantity, credential, and selectivity," Demography, Springer;Population Association of America (PAA), vol. 36(4), pages 445-460, November.
    37. Keane, Michael P, 1992. "A Note on Identification in the Multinomial Probit Model," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(2), pages 193-200, April.
    38. R. Winkelmann, 1998. "Count data models with selectivity," Econometric Reviews, Taylor & Francis Journals, vol. 17(4), pages 339-359.
    39. Victor R. Fuchs, 2018. "Schooling and Health: The Cigarette Connection," World Scientific Book Chapters, in: Health Economics and Policy Selected Writings by Victor Fuchs, chapter 9, pages 99-113, World Scientific Publishing Co. Pte. Ltd..
    40. Michael Lee Ganz, 2001. "Family health effects: complements or substitutes," Health Economics, John Wiley & Sons, Ltd., vol. 10(8), pages 699-714, December.
    41. Arnaud Chevalier & Gauthier Lanot, 2002. "The Relative Effect of Family Characteristics and Financial Situation on Educational Achievement," Education Economics, Taylor & Francis Journals, vol. 10(2), pages 165-181.
    42. Fuchs, Victor R. (ed.), 1982. "Economic Aspects of Health," National Bureau of Economic Research Books, University of Chicago Press, number 9780226267852.
    43. Alfonso Miranda & Massimiliano Bratti, 2009. "Selection-endogenous ordered probit and dynamic ordered probit models," United Kingdom Stata Users' Group Meetings 2009 01, Stata Users Group.
    44. de Walque, Damien, 2007. "Does education affect smoking behaviors?: Evidence using the Vietnam draft as an instrument for college education," Journal of Health Economics, Elsevier, vol. 26(5), pages 877-895, September.
    45. Kajal Lahiri & Jae G. Song, 2000. "The effect of smoking on health using a sequential self‐selection model," Health Economics, John Wiley & Sons, Ltd., vol. 9(6), pages 491-511, September.
    46. John Ermisch & Marco Francesconi, 2001. "Family Matters: Impacts of Family Background on Educational Attainments," Economica, London School of Economics and Political Science, vol. 68(270), pages 137-156, May.
    47. Sander, William, 1998. "The effects of schooling and cognitive ability on smoking and marijuana use by young adults," Economics of Education Review, Elsevier, vol. 17(3), pages 317-324, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. Annette Alstadsæter & Hans Henrik Sievertsen, 2009. "The Consumption Value of Higher Education," CESifo Working Paper Series 2871, CESifo.
    4. 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.
    5. Alfonso Miranda, 2010. "A double-hurdle count model for completed fertility data from the developing world," DoQSS Working Papers 10-01, Quantitative Social Science - UCL Social Research Institute, University College London.
    6. 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.
    7. Helmut Rainer & Ian Smith, 2012. "Education, Communication and Wellbeing: An Application to Sexual Satisfaction," Kyklos, Wiley Blackwell, vol. 65(4), pages 581-598, November.
    8. 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.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petter Lundborg, 0000. "The Health Returns to Education - What can we learn from Twins?," Tinbergen Institute Discussion Papers 08-027/3, Tinbergen Institute.
    2. Grimard, Franque & Parent, Daniel, 2007. "Education and smoking: Were Vietnam war draft avoiders also more likely to avoid smoking?," Journal of Health Economics, Elsevier, vol. 26(5), pages 896-926, September.
    3. de Walque, Damien, 2007. "Does education affect smoking behaviors?: Evidence using the Vietnam draft as an instrument for college education," Journal of Health Economics, Elsevier, vol. 26(5), pages 877-895, September.
    4. Tenn, Steven & Herman, Douglas A. & Wendling, Brett, 2010. "The role of education in the production of health: An empirical analysis of smoking behavior," Journal of Health Economics, Elsevier, vol. 29(3), pages 404-417, May.
    5. Grossman, Michael, 2006. "Education and Nonmarket Outcomes," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 10, pages 577-633, Elsevier.
    6. Jensen, Robert & Lleras-Muney, Adriana, 2012. "Does staying in school (and not working) prevent teen smoking and drinking?," Journal of Health Economics, Elsevier, vol. 31(4), pages 644-657.
    7. Jürges Hendrik & Meyer Sophie-Charlotte, 2020. "Educational Differences in Smoking: Selection Versus Causation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(4), pages 467-492, August.
    8. Jiang, Wei & Lu, Yi & Xie, Huihua, 2020. "Education and mental health: Evidence and mechanisms," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 407-437.
    9. Shin-Yi Chou & Jin-Tan Liu & Michael Grossman & Ted Joyce, 2010. "Parental Education and Child Health: Evidence from a Natural Experiment in Taiwan," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 33-61, January.
    10. Jason Fletcher & David Frisvold, 2014. "The long run health returns to college quality," Review of Economics of the Household, Springer, vol. 12(2), pages 295-325, June.
    11. Damon Clark & Heather Royer, 2010. "The Effect of Education on Adult Health and Mortality: Evidence from Britain," NBER Working Papers 16013, National Bureau of Economic Research, Inc.
    12. Tansel, Aysit & Keskin, Halil Ibrahim, 2017. "Education Effects on Days Hospitalized and Days out of Work by Gender: Evidence from Turkey," IZA Discussion Papers 11210, Institute of Labor Economics (IZA).
    13. Bautista, María Angélica & González, Felipe & Martinez, Luis R. & Muñoz, Pablo & Prem, Mounu, 2020. "Does Higher Education Reduce Mortality? Evidence from a Natural Experiment in Chile," SocArXiv 5s2px, Center for Open Science.
    14. Gathmann, Christina & Jürges, Hendrik & Reinhold, Steffen, 2015. "Compulsory schooling reforms, education and mortality in twentieth century Europe," Social Science & Medicine, Elsevier, vol. 127(C), pages 74-82.
    15. Baltagi, Badi H. & Flores-Lagunes, Alfonso & Karatas, Haci M., 2019. "The effect of education on health: Evidence from the 1997 compulsory schooling reform in Turkey," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 205-221.
    16. Kim, Younoh & Radoias, Vlad, 2016. "Education, individual time preferences, and asymptomatic disease detection," Social Science & Medicine, Elsevier, vol. 150(C), pages 15-22.
    17. Alexander J. Cowell, 2006. "The relationship between education and health behavior: some empirical evidence," Health Economics, John Wiley & Sons, Ltd., vol. 15(2), pages 125-146, February.
    18. Michael Grossman, 1999. "The Human Capital Model of the Demand for Health," NBER Working Papers 7078, National Bureau of Economic Research, Inc.
    19. Aysit Tansel & Halil Ibrahim Keskin, 2017. "Education Effects on Days Hospitalized and Days out of Work by Gender: Evidence from Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1721, Koc University-TUSIAD Economic Research Forum.
    20. Albouy, Valerie & Lequien, Laurent, 2009. "Does compulsory education lower mortality?," Journal of Health Economics, Elsevier, vol. 28(1), pages 155-168, January.

    More about this item

    Keywords

    Endogenous switching; count data; higher education; smoking; UK;
    All these keywords.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kee:kerpuk:2006/04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martin E. Diedrich (email available below). General contact details of provider: https://edirc.repec.org/data/dekeeuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.