Forgone Earnings from Smoking : Evidence for a Developing Country

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 equatio...

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Bibliographic Details
Main Authors:	Lokshin, Michael, Beegle, Kathleen
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	ADDICTION ADDICTIVE NATURE ADDICTIVE NATURE OF SMOKING ADULTHOOD ADVERSE HEALTH ADVERSE HEALTH EFFECT AGGRESSIVE ALCOHOL ALCOHOL CONSUMPTION ALCOHOL USE ALGORITHM ANTI-SMOKING CAMPAIGNS CAREGIVERS CHRONIC DISEASES CIGARETTE CIGARETTE CONSUMPTION CIGARETTE SMOKING CIGARETTES CONSUMPTION OF TOBACCO CURRENT SMOKERS DEPENDENCE DISEASE DISEASE CONTROL EARLY ADOLESCENCE EARLY ADOLESCENT ECONOMIC COSTS ECONOMIC LOSSES ECONOMICS OF TOBACCO CONTROL EFFECT OF ALCOHOL EPIDEMIC EX-SMOKER FEMALES FIRE INSURANCE PREMIUMS GIRLS HEALTH CARE HEALTH EFFECTS HEALTH PROMOTION HEALTH-CARE COSTS ILLNESSES INDIVIDUAL CHARACTERISTICS MALE SMOKERS MARITAL STATUS NEGATIVE EFFECTS NICOTINE NICOTINE CONTENT OCCUPATIONAL MEDICINE OVERWEIGHT PARENTAL EDUCATION PARENTAL INFLUENCE PARENTAL SMOKING PATIENTS POLLUTION PREMATURE DEATH PREVENTING TOBACCO USE PREVENTIVE MEDICINE PRICE OF TOBACCO PUBLIC HEALTH PUBLIC SPACES RELIGIOUS BELIEFS RESPIRATORY DISEASES RESPIRATORY INFECTIONS SMOKE-FREE WORKPLACE SMOKER SMOKERS SMOKING SMOKING BEHAVIOR SMOKING CESSATION SMOKING EXPOSURE SMOKING IN PUBLIC SMOKING POLICIES SMOKING PREVALENCE SMOKING PREVENTION SOCIAL MEDICINE SOCIAL NORMS SOCIAL SERVICES STD SUBSTANCE USE SURGERY TOBACCO TOBACCO CONTROL TOBACCO CONTROL INITIATIVES TOBACCO CONTROL PROGRAM TOBACCO INDUSTRY TOBACCO PRODUCTION TOBACCO PRODUCTS TOBACCO USE TREATMENT VENTILATION WESTERN EUROPE WORKERS WORKPLACE YOUNG MEN YOUNG PEOPLE YOUNG SMOKERS YOUNG WORKERS
Online Access:	http://documents.worldbank.org/curated/en/2006/10/7094984/forgone-earnings-smoking-evidence-developing-country http://hdl.handle.net/10986/9274

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Summary:	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.

Forgone Earnings from Smoking : Evidence for a Developing Country

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