Template-type: ReDIF-Paper 1.0
Author-Name: F. Brune, Lasse
Title: The smoker’s wage penalty puzzle: evidence from Britain
Abstract: This work investigates the effect of smoking on wages for male workers using panel data from Britain for the period of 1991-2005. The strong negative correlation of smoking and wages found in a crosssectional analysis reduces substantially when accounting for unobserved individual heterogeneity using Fixed Effects estimation. I find a statistically significant wage penalty that is causally due to smoking of about -2% for smokers over those who quit. Further analysis indicates, however, that the negative effect might be underestimated when comparing with those who never started smoking or quit a long time ago.

Creation-Date: 20071221
Number: 2007-31
Publication-Status: published
File-URL: https://www.iser.essex.ac.uk/wp-content/uploads/files/working-papers/iser/2007-31.pdf
File-Format: Application/pdf
Handle: RePEc:ese:iserwp:2007-31