Wages, Alcohol Use and Smoking: Simultaneous Estimates

• Author(s) / Creator(s)

  • Auld, M. Christopher

• This paper estimates a simultaneous model of moderate and heavy drinking, smoking and wages using a random sample of employed Canadian men. With all else in the system held constant, abstention from drinking and heavy drinking are associated with, respectively, large and small wage penalties relative to moderate drinking. Smoking is associated with a large wage penalty. If wages are excluded from the substance use equations, drinking abstention and heavy drinking are associated wtith large and almost identical wage penalties relative to moderate drinking, and the penalty to smoking is diminished. IHE Working Paper 98-7

• Date created

  1998

• Subjects / Keywords

  • Simultaneous Equations
  • Maximum Simulated Likelihood
  • Tobacco Use
  • Alcohol Use

• Type of Item

  Report

• DOI

  https://doi.org/10.7939/R3FB4X17V

• License

  Attribution-NonCommercial-NoDerivatives 4.0 International