Smoking, Drinking, and Income.

In an effort to increase understanding of the “alcohol/income puzzle—the finding that drinking appears to lead to higher 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 held...

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Published in:Journal of Human Resources Vol. 40; no. 2; pp. 505 - 519
Main Author: Auld, M. Christopher
Format: Article
Published: University of Wisconsin Press Spring2005
Subjects:
Online Access:View this record in EBSCOhost
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        atl: Smoking, Drinking, and Income.
      aug:
        au: Auld, M. Christopher
      su:
        Alcohol drinking
        Wage differentials
        Smoking
        Economics
        Canada
      sug:
        subj:
          Canada
          Alcohol drinking
          Wage differentials
          Smoking
          Economics
      ab: In an effort to increase understanding of the “alcohol/income puzzle—the finding that drinking appears to lead to higher 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 held constant, moderate drinking is associated with 10 percent higher income, and heavy drinking associated with 12 percent higher income, than drinking abstention. Smoking is associated with larger effects on income than drinking: Single-equation estimates suggest smokers earn 8 percent less than nonsmokers, and the smoking penalty rises to 24 percent after correcting for endogeneity. Reprinted by permission of the publisher.
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    language: English
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