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Smoking and long-term labour market outcomes
Petri Böckerman1, Ari Hyytinen2, Jaakko Kaprio3
1Labour Institute for Economic Research and IZA, Helsinki, Finland.
Tobacco Control
|February 27, 2014
Summary
Smoking is linked to lower lifetime earnings and income, even when accounting for shared genetics and environment. These findings highlight the significant economic impact of smoking beyond health concerns.
Area of Science:
- Economics
- Public Health
- Behavioral Science
Background:
- Smoking is a major public health concern with well-documented health costs.
- The economic consequences of smoking, particularly on labor market outcomes, are less understood.
Purpose of the Study:
- To investigate the long-term impact of smoking on labor market outcomes.
- To quantify the association between smoking and lifetime earnings using a robust methodology.
Main Methods:
- Utilized Finnish twin data (born 1945-1957) to control for shared genetic and environmental factors.
- Measured lifetime cigarette consumption (pack-years) in early adulthood.
- Assessed average earnings and taxable income over a 15-year period in later adulthood.
Main Results:
- Smokers exhibit significantly lower long-term income and earnings.
- Controlling for genetic and environmental factors, smoking showed a negative association with lifetime income (p=0.015).
- This association remained robust when considering covariates like education, health, and extraversion.
Conclusions:
- Smoking is demonstrably linked to poorer long-term labor market performance.
- Highlighting the indirect monetary costs of smoking can enhance public health policies focused on smoking cessation.
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