The wage penalty of smoking in Brazil: evidence from the Special Survey on Tobacco Addiction

Justus, Marcelo; Sant'Anna, Elder; Davanzo, Eloá Sales; Moreira, Gustavo Carvalho

doi:10.11606/1980-5330/ea142568

Cited by 2 publications

(6 citation statements)

References 21 publications

(36 reference statements)

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“…When it comes to the Brazilian labor market, this result is close to that observed by Almeida and Ara ujo J unior (2017) and Justus et al (2019), both using data from 2008.…”

Section: Generalsupporting

confidence: 88%

“…These factors include the disruption of manual execution tasks due to cigarette consumption, an increase in employer-relative costs, workplace discrimination, the inclination of smokers towards jobs with health insurance benefits rather than higher remuneration, and a high intertemporal discount rate leading to low investments in human capital. Justus et al. (2019) also corroborate that the negative association between smoking and income from work can occur through increased absenteeism, reduced productivity, and discrimination in the labor market.…”

Section: Theoretical and Empirical Reviewsupporting

confidence: 64%

“…The results showed that smokers, regardless of the models conditioned for the mean or by quantile with and without instrumental variables, presented lower work performance, with a wage penalty for smokers with control for endogeneity ranging from 15.2% to 36.5% over the conditional distribution of individual incomes. Justus et al (2019) demonstrate that, in comparison to nonsmokers, men and women who smoke experience income penalties of 29.7% and 24.2%, respectively, with a significant portion of this disparity attributed to observable characteristics. The study utilized data from PNAD 2008, employing the Heckman procedure to address sample selectivity bias and the Oaxaca-Blinder method for decomposing the wage gap between smokers and nonsmokers.…”

Section: Theoretical and Empirical Reviewmentioning

confidence: 91%

“…Justus et al. (2019) demonstrate that, in comparison to nonsmokers, men and women who smoke experience income penalties of 29.7% and 24.2%, respectively, with a significant portion of this disparity attributed to observable characteristics.…”

Section: Theoretical and Empirical Reviewmentioning

confidence: 91%

“…While the subject has been extensively explored in existing literature, there is a limited number of contributions within the Brazilian context, notably by Almeida and Araújo Júnior (2017), Justus, Sant’Anna, Davanzo, and Moreira (2019), and Uhr, Parfitt, Uhr, and Ely (2021). These studies consistently suggest that smokers face wage penalties in the Brazilian labor market, albeit to varying degrees.…”

Section: Introductionmentioning

confidence: 99%

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Smoking effects on labor income: new evidence for Brazil

Vieira,

Pereira

2024

ECON

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PurposeThis study aims to investigate the effect of smoking on the income of workers in the Brazilian labor market.Design/methodology/approachUsing data from the 2019 National Health Survey (PNS), we initially address the sample selection bias concerning labor market participation by using the Heckman (1979) method. Subsequently, the decomposition of income between smokers and nonsmokers is analyzed, both on average and across the earnings distribution by employing the procedure of Firpo, Fortin, and Lemieux (2009) - FFL decomposition. Ñopo (2008) technique is also used to obtain more robust estimates.FindingsOverall, the findings indicate an income penalty for smokers in the Brazilian labor market across both the average and all quantiles of the income distribution. Notably, the most significant differentials and income penalties against smokers are observed in the lower quantiles of the distribution. Conversely, in the higher quantiles, there is a tendency toward a smaller magnitude of this gap, with limited evidence of an income penalty associated with this habit.Research limitations/implicationsThis study presents an important limitation, which refers to a restriction of the PNS (2019), which does not provide information about some subjective factors that also tend to influence the levels of labor income, such as the level of effort and specific ability of each worker, whether smokers or not, something that could also, in some way, be related to some latent individual predisposition that would influence the choice of smoking.Originality/valueThe relevance of the present study is clear in identifying the heterogeneity of the income gap in favor of nonsmokers, as in the lower quantiles there was a greater magnitude of differentials against smokers and a greater incidence of unexplained penalties in the income of these workers, while in the higher quantiles, there was low magnitude of the differentials and little evidence that there is a penalty in earnings since the worker is a smoker.

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“…When it comes to the Brazilian labor market, this result is close to that observed by Almeida and Ara ujo J unior (2017) and Justus et al (2019), both using data from 2008.…”

Section: Generalsupporting

confidence: 88%

Section: Theoretical and Empirical Reviewsupporting

confidence: 64%

Section: Theoretical and Empirical Reviewmentioning

confidence: 91%

Section: Theoretical and Empirical Reviewmentioning

confidence: 91%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Smoking effects on labor income: new evidence for Brazil

Vieira,

Pereira

2024

ECON

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Education and smoking behavior in Brazil: decision to smoke and daily cigarette consumption intensity

et al. 2020

Self Cite

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This study analyses the relationship between education and smoking behavior. Our empirical models were estimated using data for Brazilian citizens from the 2008 Special Survey on Tobacco Addiction. We estimated probit, sample-selection, and zero-inflated negative binomial models. Empirical analyses for women and men were conducted separately. We found that higher education levels are associated with lower smoking probability and lower daily consumption intensity.

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The wage penalty of smoking in Brazil: evidence from the Special Survey on Tobacco Addiction

Cited by 2 publications

References 21 publications

Smoking effects on labor income: new evidence for Brazil

Smoking effects on labor income: new evidence for Brazil

Education and smoking behavior in Brazil: decision to smoke and daily cigarette consumption intensity

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