Cigarette smokers earn significantly less than nonsmokers, but the magnitude of the smoking wage gap and the pathways … Cohort, and we simulate the model under counterfactual scenarios that isolate the contemporaneous effects of smoking from … for unobserved heterogeneity in the joint determination of smoking, human capital, labor supply, and wages, suggest that …

for one vital health-related behavior, smoking. The decomposition uses an underlying model that considers both individual … heterogeneity and smoking persistence, showing that the largest contributions to the pro-rich smoking inequality come from years of …

While the health risks associated with smoking are well known, the impact on income distributions is not. This paper … extends the literature by examining the distributional effects of a behavioral choice, in this case smoking, on net marginal … NMSSTR than nonsmokers. In addition, as low-earnings workers have a higher smoking prevalence than high-earnings workers …