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Finally a Smoking Gun? Compensating Differentials and the Introduction of Smoking Bans

  • Daniel Wissmann
American Economic Journal: Applied Economics
vol. 14, no. 1, January 2022
(pp. 75-106)
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Abstract

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.

Citation

Wissmann, Daniel. 2022. "Finally a Smoking Gun? Compensating Differentials and the Introduction of Smoking Bans." American Economic Journal: Applied Economics, 14 (1): 75-106. DOI: 10.1257/app.20180077

Additional Materials

JEL Classification

  • I12 Health Behavior
  • I18 Health: Government Policy; Regulation; Public Health
  • J22 Time Allocation and Labor Supply
  • J31 Wage Level and Structure; Wage Differentials
  • J81 Labor Standards: Working Conditions
  • L83 Sports; Gambling; Restaurants; Recreation; Tourism
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