The effect of the minimum wage on smoking-related indicators in selected OECD countries
DOI:
https://doi.org/10.24136/eq.2020.020Keywords:
smoking addiction, smokers, minimum wage, economic development, OECD countriesAbstract
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.
Downloads
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.
DOI: https://doi.org/10.1016/j.ijhm.2019.04.019
View in Google Scholar
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.
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.jaut.2009.12.003
View in Google Scholar
Auld, M. C. (2005). Smoking, drinking, and income. Journal of Human Resources, 40(2).
DOI: https://doi.org/10.3368/jhr.XL.2.505
View in Google Scholar
Boeri, T. (2012). Setting the minimum wage. Labour Economics, 19(3).
DOI: https://doi.org/10.1016/j.labeco.2012.01.001
View in Google Scholar
Breusch, T. S., & Pagan, A. R. (1979). A simple test for heteroscedasticity and random coefficient variation. Econometrica, 47.
DOI: https://doi.org/10.2307/1911963
View in Google Scholar
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.
DOI: https://doi.org/10.1093/ajae/aaq036
View in Google Scholar
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).
DOI: https://doi.org/10.18637/jss.v061.i06
View in Google Scholar
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.
DOI: https://doi.org/10.1093/ntr/ntx254
View in Google Scholar
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.
DOI: https://doi.org/10.1136/tc.2006.018986
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.ehb.2019.01.003
View in Google Scholar
Dimsdale, N. H. (1984). Employment and real wages in the inter-war period. National Institute Economic Review, 110(1).
DOI: https://doi.org/10.1177/002795018411000110
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.annepidem.2015.03.016
View in Google Scholar
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.
DOI: https://doi.org/10.18332/tid/110800
View in Google Scholar
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.
DOI: https://doi.org/10.1017/S0033291703008596
View in Google Scholar
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.
DOI: https://doi.org/10.1136/jech.2004.025684
View in Google Scholar
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.
DOI: https://doi.org/10.1111/cdep.12270
View in Google Scholar
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.
DOI: https://doi.org/10.1111/ecin.12453
View in Google Scholar
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.
DOI: https://doi.org/10.1056/NEJMsa1211128
View in Google Scholar
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.
DOI: https://doi.org/10.20882/adicciones.1191
View in Google Scholar
Josifidis, K., & Supic, N. (2019). The uncertainty of academic rent and income inequality: the OECD panel evidence. Journal of Economic Issues, 53(2).
DOI: https://doi.org/10.1080/00213624.2019.1594521
View in Google Scholar
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.
DOI: https://doi.org/10.1136/lupus-2019-lsm.37
View in Google Scholar
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).
View in Google Scholar
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).
View in Google Scholar
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.
DOI: https://doi.org/10.2105/AJPH.2016.303268
View in Google Scholar
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).
View in Google Scholar
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.
DOI: https://doi.org/10.1080/14659891.2020.1760379
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.ypmed.2018.10.005
View in Google Scholar
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.
DOI: https://doi.org/10.1002/pam.22006
View in Google Scholar
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.
DOI: https://doi.org/10.1007/s10198-016-0847-5
View in Google Scholar
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.
DOI: https://doi.org/10.1371/journal.pmed.1002020
View in Google Scholar
Marcus, J. (2014). Does job loss make you smoke and gain weight? Economica, 81(324). doi: 10.1111/ecca.12095.
DOI: https://doi.org/10.1111/ecca.12095
View in Google Scholar
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.
DOI: https://doi.org/10.1093/ntr/ntq245
View in Google Scholar
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.
View in Google Scholar
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.
DOI: https://doi.org/10.1186/s12889-019-7376-y
View in Google Scholar
Nichter, M. (2003). Smoking: what does culture have to do with it? Addiction, 98. doi: 10.1046/j.1360-0443.98.s1.9.x.
DOI: https://doi.org/10.1046/j.1360-0443.98.s1.9.x
View in Google Scholar
OECD (2016). OECD Factbook 2015-2016: Economic, environmental and social statistics. Paris, France: OECD Publishing. doi: 10.1787/factbook-2015-en.
DOI: https://doi.org/10.1787/factbook-2015-en
View in Google Scholar
OECD (2019a). Dataset: LFS - Real minimum wages. Retrieved form https://stats.oecd.org/OECDStat_Metadata/ShowMetadata.ashx?Dataset=RMW&Lang=en (12.12.2019).
View in Google Scholar
OECD (2019b). Non-Medical Determinants of health. Retrieved form https://stats.oecd.org/Index.aspx?DataSetCode=HEALTH_LVNG (12.12.2019).
View in Google Scholar
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).
View in Google Scholar
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).
View in Google Scholar
Pavlas Martanová, V., & Frombergerová, A. (2018). Evaluation of a Czech adaptation of the boys and girls plus prevention programme. Adiktologie, 18(3–4).
View in Google Scholar
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.
DOI: https://doi.org/10.1093/eurpub/cki008
View in Google Scholar
Prabhat Jha, M. D. (2011). Avoidable deaths from smoking: a global perspective. Public Health Reviews, 33(2).
DOI: https://doi.org/10.1007/BF03391651
View in Google Scholar
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).
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.japwor.2018.10.002
View in Google Scholar
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.
DOI: https://doi.org/10.1016/0022-3999(96)00095-5
View in Google Scholar
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.
DOI: https://doi.org/10.1136/tc.7.4.409
View in Google Scholar
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.
DOI: https://doi.org/10.1093/jnci/djh014
View in Google Scholar
Waltman, J. L. (2000). The politics of the minimum wage. Chicago: University of Illinois Press.
View in Google Scholar
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).
View in Google Scholar
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).
View in Google Scholar
WHO (2019). Tobacco. Retrieved form https://www.who.int/en/news-room/fact-sheets/detail/tobacco (12.12.2019).
View in Google Scholar
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.
DOI: https://doi.org/10.1001/jama.298.22.2654
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.jbusres.2019.06.006
View in Google Scholar
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.
DOI: https://doi.org/10.5152/ADDICTA.2020.19045
View in Google Scholar
