NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

More Bad News for Smokers? The Effects of Cigarette Smoking on Labor Market Outcomes

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

NBER Working Paper No. 5270
Issued in September 1995
NBER Program(s):   HE   LS

This paper uses data from the National Longitudinal Survey of Youth to examine the effect of smoking on wages and employment. The panel nature and household structure of these data enable us to implement methods to account for differences in observed and unobserved individual characteristics that may be correlated with both smoking and wages. Changes in wages associated with changes in smoking behavior and models that utilize sibling comparisons are estimated to address the potential heterogeneity problem. Estimates from alternative specifications all indicate that smoking reduces wages by roughly 4-8%. No robust, statistically significant effect on employment is observed.

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Document Object Identifier (DOI): 10.3386/w5270

Published: Industrial and Labor Relations Review (April 1997): 493-509.

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