Smoking, Drinking, and Income
نویسنده
چکیده
In an effort to further understanding of the “alcohol/income puzzle” — the finding that moderate and perhaps even heavy drinking appears to cause increased income — this paper presents maximum simulated likelihood estimates of a system of limited dependent variables governing smoking and drinking patterns and income. With all else in the system held constant, moderate drinking leads to 10% greater income than drinking abstention, whereas heavy drinking does not cause lower wages than moderate drinking. Smoking is associated with larger effects on income than drinking: Single–equation estimates suggest smokers earn 8% less than non–smokers, and the smoking penalty rises to 24% after correcting for endogeneity. JEL Classification: I1, C3
منابع مشابه
Smoking , Drinking
A growing literature identiies a beneecial eeect of moderate and even heavy drinking on wages and a negative eeect of smoking on wages. An outstanding issue is whether these results obtain because of a causal eeect of substance use on wages or whether the observed correlations reeect the eeects of income on consumption or other en-dogeneity problems. This paper presents full information estimat...
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