Forgone Earnings from Smoking : Evidence for a Developing Country

Lokshin, Michael; Beegle, Kathleen

Forgone Earnings from Smoking : Evidence for a Developing Country

2006

Lokshin, Michael | Beegle, Kathleen

The authors estimate the economic losses related to the negative effect of smoking on wages in a context of a developing country. Using data from the 2005 Albania Living Standards Monitoring Survey, they jointly estimate a system of three equations: the smoking decision and two separate wage equations for smokers and nonsmokers. 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. On average smokers' wages are 20 percent lower than the wages of similar nonsmokers, providing strong evidence for the potential policy relevance of tobacco control initiatives for developing countries.

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AGROVOC Keywords

chronic diseases cigarette cigarettes disease control economic losses females health care marital status nicotine overweight patients pollution public health respiratory diseases smoking social norms social services tobacco tobacco industry ventilation western europe workers young workers

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Publisher

World Bank, Washington, DC

Other Subjects

Caregivers; Nicotine content; Illnesses; Individual characteristics; Cigarette consumption; Epidemic; Young people; Tobacco control; Health promotion; Preventive medicine; Respiratory infections; Addictive nature of smoking; Premature death; Surgery; Smoking behavior; Tobacco use; Adulthood; Male smokers; Economic costs; Smoking in public; Smoking prevention; Aggressive; Treatment; Early adolescence; Consumption of tobacco; Economics of tobacco control; Anti-smoking campaigns; Health-care costs; Ex-smoker; Early adolescent; Parental influence; Smoker; Tobacco production; Parental education; Dependence; Std; Adverse health; Smoking exposure; Parental smoking; Tobacco control initiatives; Young smokers; Adverse health effect; Girls; Social medicine; Health effects; Smoking prevalence; Disease; Smokers; Fire insurance premiums; Smoke-free workplace; Preventing tobacco use; Tobacco control program; Religious beliefs; Current smokers; Effect of alcohol; Price of tobacco; Smoking policies; Workplace; Alcohol use; Alcohol consumption; Public spaces; Tobacco products; Substance use; Alcohol; Young men; Addictive nature; Cigarette smoking; Smoking cessation; Algorithm; Negative effects; Addiction; Occupational medicine

License

Policy Research Working Paper; No. 4018http://creativecommons.org/licenses/by/3.0/us/World BankCC BY 3.0 Unported

Source

Policy Research Working Paper; No. 4018

In AGRIS since: 2014-09-15

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http://hdl.handle.net/10986/9274

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Forgone Earnings from Smoking : Evidence for a Developing Country

2006

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