J L Zagorsky1. 1. Center For Human Resource Research, Ohio State University, 921 Chatham Lane, Suite 100, Columbus, Ohio 43221, USA. zagorsky.1@osu.edu
Abstract
OBJECTIVE: To investigate the impact of smoking on the wealth of US young baby boomers. METHODOLOGY: The research analyses self reported responses of both smoking habits and wealth holdings from a nationally representative sample of US individuals born between 1957 to 1964 (n = 8908). Data are from four waves (1984, 1992, 1994, 1998) of the National Longitudinal Survey of Youth 1979 cohort, a random survey of individuals conducted by the US Department of Labor using a stratified multistage area sample design. RESULTS: Regression results show lower net worth is associated with smoking, after holding constant a variety of demographic factors. Respondents who were ever heavy smokers are associated with a reduction in net worth of over 8300 dollars while light smokers are 2000 dollars poorer compared to non-smokers. Beyond this reduction, each adult year of smoking is associated with a decrease in net worth of 410 dollars or almost 4%. CONCLUSIONS: While a causal relation cannot be proven, smokers appear to pay for tobacco expenditures out of income that is saved by non-smokers. Hence, reductions in smoking will boost wealth, especially among the poor.
OBJECTIVE: To investigate the impact of smoking on the wealth of US young baby boomers. METHODOLOGY: The research analyses self reported responses of both smoking habits and wealth holdings from a nationally representative sample of US individuals born between 1957 to 1964 (n = 8908). Data are from four waves (1984, 1992, 1994, 1998) of the National Longitudinal Survey of Youth 1979 cohort, a random survey of individuals conducted by the US Department of Labor using a stratified multistage area sample design. RESULTS: Regression results show lower net worth is associated with smoking, after holding constant a variety of demographic factors. Respondents who were ever heavy smokers are associated with a reduction in net worth of over 8300 dollars while light smokers are 2000 dollars poorer compared to non-smokers. Beyond this reduction, each adult year of smoking is associated with a decrease in net worth of 410 dollars or almost 4%. CONCLUSIONS: While a causal relation cannot be proven, smokers appear to pay for tobacco expenditures out of income that is saved by non-smokers. Hence, reductions in smoking will boost wealth, especially among the poor.
Authors: Rachel Widome; Anne M Joseph; Patrick Hammett; Michelle Van Ryn; David B Nelson; John A Nyman; Steven S Fu Journal: Prev Med Rep Date: 2015-10-29