Smoking, Drinking, and Earnings in China

Based on China Health and Nutrition Survey data, using the ratio of smokers and drinkers in the household excluding the observation itself, the paper investigates the effects of smoking and drinking on earnings in urban China. We find that smoking has no effects on earnings, but drinking has significant positive effects on earnings. We also find that drinking can affect earnings in nonpublic sector and in non-office jobs. Drinking has significant positive effects on wages, but has no effects on nonwage income. Drinking has larger effects on woman's earnings than that of men's. In addition, we find that the channel of drinking affecting earnings is not by changing health status, or labor supply, but by social function. Our results show that there is no economic return of smoking, but return to drinking is positive significantly.
JOUR
Yin, Zhichao
Gan, Li
2010
Jingji Yanjiu/Economic Research Journal
45
10
90-100
05779154
673