This paper uses data from the National Longitudinal Survey of Youth to examine the effect of smoking on wages and employment. The panel nature and household structure of these data enable us to implement methods to account for differences in observed and unobserved individual characteristics...

Using National Longitudinal Survey of Youth data, the authors examine the effect of smoking on wages. Their analysis controls for differences in observed and unobserved individual characteristics that may be correlated with both smoking and wages, person-specific characteristics that are...