Using the staggered introduction of smoking bans in the German hospitality industry over 2007–2008, I find a robust 2.4 percent decline in the daily earnings of workers in bars and restaurants associated with the most comprehensive smoking ban. This effect is unlikely to be driven by a decline in hospitality revenues or hours worked but is consistent with a simple model of compensating differentials.
"Finally a Smoking Gun? Compensating Differentials and the Introduction of Smoking Bans."
American Economic Journal: Applied Economics,
Health: Government Policy; Regulation; Public Health
Time Allocation and Labor Supply
Wage Level and Structure; Wage Differentials
Labor Standards: Working Conditions
Sports; Gambling; Restaurants; Recreation; Tourism