April 2002

IZA DP No. 473: A pint a day raises a man's pay; but smoking blows that gain away

published in: Journal of Health Economics, 2004, 23 (5), 863-886

This paper studies the wage effects of the use of alcohol and tobacco. The analysis based on a recent survey in the Netherlands shows that for males the use of tobacco has a negative wage effect of about 10% while the use of alcohol has a positive wage effect of about the same size. The wages of females are not affected by smoking and drinking.