The effect of the minimum wage on smoking-related indicators in selected OECD countries

• Authors: Martin Rigelsky , Viera Ivankova , Beata Gavurova , Martin Mudrik

Abstracts

EN

Research background: The amount of the minimum wage is, in some sense, an indicator of the economic level of a country. There are considerable differences in this indicator between the countries of the Organisation for Economic Co-operation and Development (OECD). At the same time, the minimum wage is also an instrument that largely regulates people's behaviour and affects different areas of life. Purpose of the article: The objective of this study is to determine the relations between the minimum wage and individual smoking-related indicators in a sample of selected OECD countries (16 countries). The study answers the question of whether people in countries with lower minimum wages (lower development) smoke more than in countries with higher minimum wages. Methods: Four variables entered into the analytical processing, the minimum wage, daily smokers (age 15+), daily smokers (age 15-24) and tobacco consumption in grams per capita (age 15+). The data were collected between 2011 and 2017. The analysis was carried out in three steps ? descriptive analysis, cluster analysis and regression analysis. Findings & Value added: It has been found that the minimum wage negatively affects smoking and tobacco consumption, i.e. in developed countries, where the minimum wage is higher, people smoke less. Regarding the evaluation of minimum wage and tobacco consumption, countries such as Austria, New Zealand or the United States can be considered positive. On the other hand, opportunities for improvement can be seen in countries such as the Czech Republic, Spain, Estonia and Israel. The study highlights the importance of the effect of the minimum wage on selected smoking-related indicators in selected OECD countries. In all three cases, there was a negative relation; therefore, smoking can be expected to decrease, if the minimum wage is increased.

Keywords

EN

smoking addiction; smokers; minimum wage; economic development; OECD countries

• Publisher: Instytut Badań Gospodarczych
• Journal: Equilibrium. Quarterly Journal of Economics and Economic Policy
• Year: 2020
• Volume: 15
• Issue: 3
• Pages: 439-461

Dates

published

2020

Contributors

author

Martin Rigelsky

• University of Prešov

• https://orcid.org/0000000314274689

author

Viera Ivankova

• University of Presov

• https://orcid.org/0000000261641165

author

Beata Gavurova

• Technical University of Košice

• https://orcid.org/000000020606879X

author

Martin Mudrik

• University of Presov

• https://orcid.org/000000023215232X

References

• Ahmat, N. H. C., Arendt, S. W., & Russell, D. W. (2019). Effects of minimum wage policy implementation: compensation, work behaviors, and quality of life. International Journal of Hospitality Management, 81. doi: 10.1016/j.ijhm. 2019.04.019.
• Andreyeva, E., & Ukert, B. (2018). The impact of the minimum wage on health. International Journal of Health Economics and Management, 18. doi: 10.1007 /s10754-018-9237-0.
• Arnson, Y., Shoenfeld, Y., & Amital, H. (2010). Effects of tobacco smoke on immunity, inflammation and autoimmunity. Journal of Autoimmunity, 34(3). doi: 10.1016/j.jaut.2009.12.003.
• Auld, M. C. (2005). Smoking, drinking, and income. Journal of Human Resources, 40(2).
• Boeri, T. (2012). Setting the minimum wage. Labour Economics, 19(3).
• Breusch, T. S., & Pagan, A. R. (1979). A simple test for heteroscedasticity and random coefficient variation. Econometrica, 47.
• Brinkley, J. (2010). Low income and poor health choices: the example of smoking. American Journal of Agricultural Economics, 92(4). doi: 10.1093/ajae/aaq036.
• Charrad, M., Ghazzali, N., Boiteau, V., & Niknafs, A. (2014). NbClust: an R package for determining the relevant number of clusters in a data set. Journal of Statistical Software, 61(6).
• Chen, J., McGhee, S., & Lam, T. H. (2019). Economic costs attributable to smoking in Hong Kong in 2011: a possible increase from 1998. Nicotine & Tobacco Research, 21(4). doi: 10.1093/ntr/ntx254.
• Chung, C., Wang, J., Yu, C., & Yang, M. (2007). Lifetime medical expenditure and life expectancy lost attributable to smoking through major smoking related diseases in Taiwan. Tobacco Control, 16(6). doi: 10.1136/tc.2006.018986.
• Di Novi, C., & Marenzi, A. (2019). The smoking epidemic across generations, genders, and educational groups: a matter of diffusion of innovations. Economics & Human Biology, 33. doi: 10.1016/j.ehb.2019.01.003.
• Dimsdale, N. H. (1984). Employment and real wages in the inter-war period. National Institute Economic Review, 110(1).
• Du, J., & Leigh, J. P. (2015). Effects of wages on smoking decisions of current and past smokers. Annals of Epidemiology, 25(8). doi: 10.1016/j.annepidem.2015. 03.016.
• Duko, B., Melese, Y., & Ebrahim, J. (2019). Determinants of cigarette smoking among adolescents in ethiopia: a cross-sectional study. Tobacco Induced Diseases, 17. doi: 10.18332/tid/110800.
• Fergusson, D. M., Goodwin, R. D., & Horwood, L. J. (2003). Major depression and cigarette smoking: results of a 21-year longitudinal study. Psychological Medicine, 33(8). doi: 10.1017/S0033291703008596.
• Giskes, K., Kunst, A. E., Benach, J., Borrell, C., Costa, G., Dahl, E., Dalstra, J. A. A., Federico, B., Helmert, U., & Judge, K. (2005). Trends in smoking behaviour between 1985 and 2000 in nine European countries by education. Journal of Epidemiology and Community Health, 59(5). doi: 10.1136/jech.2004.025 684.
• Hill, H. D., & Romich, J. (2018). How will higher minimum wages affect family life and children's well-being? Child Development Perspectives, 12(2). doi: 10.1111/cdep.12270.
• Horn, B. P., Maclean, J. C., & Strain, M. R. (2017). Do minimum wage increases influence worker health? Economic Inquiry, 55(4). doi: 10.1111/ecin.12453.
• Jha, P., Landsman, V., Rostron, B., Thun, M., Anderson, R. N., McAfee, T., & Peto, R. (2013). 21st-century hazards of smoking and benefits of cessation in the United States. New England Journal of Medicine, 368(4). doi: 10.1056/ NEJMsa1211128.
• Jimenez-Trevino, L., Velasco, A., Rodriguez-Revuelta, J., Abad, I., De La Fuente-Tomas, L., Gonzalez-Blanco, L., Garcia-Alvarez, L., Fernandez-Pelaez, A., Menendez-Miranda, I., Florez, G., Garcia-Portilla, P., Bobes, J., & Saiz, P. A. (2019). Factors associated with tobacco consumption in patients with depression. Adicciones, 31(4). doi: 10.20882/adicciones.1191.
• Josifidis, K., & Supic, N. (2019). The uncertainty of academic rent and income inequality: the OECD panel evidence. Journal of Economic Issues, 53(2).
• Kallas, R., Li, J., & Petri, M. (2019). Association of African-American ethnicity and smoking status with total and individual damage index in systemic lupus erythematosus. Clinical Rheumatology, 39. doi: 10.1007/s10067-019-04800-1.
• Kaul, A., Schieler, M., & Agetchen, CH. (2018). The effect of graphic warning labels on cigarette packages in OECD/EU countries. Retrieved form https://www.uni-saarland.de/fileadmin/user_upload/Professoren/fr12_ProfKaul/ Research/20181030_KaulSchielerAgethen_GWL.pdf (12.12.2019).
• Kolářová, E., Homola, D., Kolářová, V., & Kramná, E. (2019). Analysis of substance use and its relation to the tax policy of the Czech Republic. Adiktologie, 1(19).
• Komro, K. A., Livingston, M. D., Markowitz, S., & Wagenaar, A. C. (2016). The effect of an increased minimum wage on infant mortality and birth weight. American Journal of Public Health, 106(8). doi: 10.2105/AJPH.2016.303268.
• Kulhánek, A., Gabrhelík, R., Novák, D., Burda, V., & Brendryen, H. (2018). eHealth intervention for smoking cessation for Czech tobacco smokers: pilot study of user acceptance. Adiktologie, 18(2).
• Lee, H., Lee, H. H., Kang, A., Cha, Y., & Operario, D. (2020). Psychological stress, smoking, and hazardous drinking behaviors in South Korea: findings from the Korea National Health and Nutrition Examination Survey. Journal of Substance Use. doi: 10.1080/14659891.2020.1760379.
• Leigh, J. P., Leigh, W. A., & Du, J. (2019). Minimum wages and public health: a literature review. Preventive Medicine, 118. doi: 10.1016/j.ypmed.2018. 10.005.
• Lenhart, O. (2017a). Do higher minimum wages benefit health? Evidence from the UK. Journal of Policy Analysis and Management, 36(4). doi: 10.1002/pam. 22006.
• Lenhart, O. (2017b). The impact of minimum wages on population health: evidence from 24 OECD countries. The European Journal of Health Economics. 18(8). doi: 10.1007/s10198-016-0847-5.
• Lightwood, J., & Glantz, S. A. (2016). Smoking behavior and healthcare expenditure in the United States, 1992-2009: panel data estimates. Plos Medicine, 13(5). doi: 10.1371/journal.pmed.1002020.
• Marcus, J. (2014). Does job loss make you smoke and gain weight? Economica, 81(324). doi: 10.1111/ecca.12095.
• Max, W., Sung, H., Tucker, L., & Stark, B. (2011). The cost of smoking for California's hispanic community. Nicotine & Tobacco Research, 13(4). doi: 10.1093/ntr/ntq245.
• Monti, S., Tamayo, P., Mesirov, J., & Golub, T. (2003) Consensus clustering: a resampling-based method for class discovery and visualization of GeneExpression Microarray data. Machine Learning, 52.
• Narain, K. D. C., & Zimmerman, F.J. (2019). Examining the association of changes in minimum wage with health across race/ethnicity and gender in the United States. BMC Public Health, 19. doi: 10.1186/s12889-019-7376-y.
• Nichter, M. (2003). Smoking: what does culture have to do with it? Addiction, 98. doi: 10.1046/j.1360-0443.98.s1.9.x.
• OECD (2016). OECD Factbook 2015-2016: Economic, environmental and social statistics. Paris, France: OECD Publishing. doi: 10.1787/factbook-2015-en.
• OECD (2019a). Dataset: LFS - Real minimum wages. Retrieved form https://stats.oecd.org/OECDStat_Metadata/ShowMetadata.ashx?Dataset=RMW&Lang=en (12.12.2019).
• OECD (2019b). Non-Medical Determinants of health. Retrieved form https://stats.oecd.org/Index.aspx?DataSetCode=HEALTH_LVNG (12.12.2019).
• OECD (2019c). OECD Health statistics 2019. Definitions, sources and methods - daily smokers. Retrieved form https://stats.oecd.org/wbos/fileview2.aspx?IDF ile=4b75ea51-2ba2-4744-a9c4-d6b04b669db5 (12.12.2019).
• OECD (2019d). OECD Health statistics 2019. Definitions, sources and methods - tobacco consumption in grams per capita. Retrieved form http://stats.oecd.org/wbos/fileview2.aspx?IDFile=8e59b835-8196-426e-9297-15bc1dab652c (12.12.2019).
• Pavlas Martanová, V., & Frombergerová, A. (2018). Evaluation of a Czech adaptation of the boys and girls plus prevention programme. Adiktologie, 18(3–4).
• Piko, B. F., Luszczynska, A., Gibbons, F. X., & Tekozel, M. (2005). A culture-based study of personal and social influences of adolescent smoking. European Journal of Public Health, 15(4). doi: 10.1093/eurpub/cki008.
• Prabhat Jha, M. D. (2011). Avoidable deaths from smoking: a global perspective. Public Health Reviews, 33(2).
• Reynauld, E. (2017). The international labour organization and the living wage: a historical perspective. Conditions of Work and Employment Series, 90. Retrieved form http://ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/---travail/documents/publication/wcms_557250.pdf (12.12.2019).
• Sun, Y. W. (2019). Smoking and wage rates - evidence from Japanese panel data. Japan and the World Economy, 49. doi: 10.1016/j.japwor.2018.10.002.
• Steptoe, A., Wardle, J., Pollard, T. M., Canaan, L., & Davies, G. J. (1996). Stress, social support and health-related behavior: a study of smoking, alcohol consumption and physical exercise. Journal of Psychosomatic Research, 41(2). doi: 10.1016/0022-3999(96)00095-5.
• Tyas, S. L., & Pederson, L. L. (1998). Psychosocial factors related to adolescent smoking: a critical review of the literature. Tobacco Control, 7(4). doi: 10.1136/tc.7.4.409.
• Vineis, P., Alavanja, M., Buffler, P., Fontham, E., Franceschi, S., Gao, Y. T., Gupta, P. C., Hackshaw, A., Matos, E., Samet, J., Sitas, F., Smith, J., Stayner, L., Straif, K., Thun, M. J., Wichmann, H. E., Wu, A. H., Zaridze, D., Peto, R., & Doll, R. (2004). Tobacco and cancer: recent epidemiological evidence. JNCI-Journal of The National Cancer Institute, 96(2). doi: 10.1093/jnci/djh014.
• Waltman, J. L. (2000). The politics of the minimum wage. Chicago: University of Illinois Press.
• Wehby, G., Dave, D., & Khaestner, R. (2018). Effects of the minimum wage on infant health. Retrieved form https://www.nber.org/papers/w22373.pdf (12.12.2019).
• WHO (2013). WHO Report on the global tobacco epidemic, 2013: enforcing bans on tobacco advertising, promotion and sponsorship. Geneva, Switzerland. Retrieved form http://apps.who.int/iris/bitstream/10665/85380/1/978921505871 _eng.pdf (12.12.2019).
• WHO (2019). Tobacco. Retrieved form https://www.who.int/en/news-room/fact-sheets/detail/tobacco (12.12.2019).
• Willi, C., Bodenmann, P., Ghali, W. A., Faris, P. D., & Cornuz, J. (2007). Active smoking and the risk of type 2 diabetes - a systematic review and meta-analysis. JAMA-Journal of the American Medical Association, 298(22). doi: 10.1001/jama.298.22.2654.
• Yang, Z. Y., Floyd, K., & Tanner, J. F. (2019). Effects of antismoking messages from media on adolescent smoking: the roles of family, school, and culture. Journal of Business Research, 103. doi: 10.1016/j.jbusres.2019.06.006.
• Yildiz, F. (2020). Determinants of cigarette consumption in Turkey: an ARDL bounds testing approach. Addicta-The Turkish Journal on Addictions, 7(2). doi: 10.5152/ADDICTA.2020.19045.

Identifiers

DOI

10.24136/eq.2020.020

Biblioteka Nauki

22444413