Gender, Income Levels, and the Demand for Cigarettes

38 Pages Posted: 2 Nov 2000

See all articles by Joni Hersch

Joni Hersch

Vanderbilt University - Law School; IZA Institute of Labor Economics; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - College of Arts and Science - Department of Economics

Date Written: October 2000

Abstract

This paper uses data from the Current Population Survey to analyze determinants of cigarette demand. Price elasticities for smoking participation and quantity of cigarettes smoked are between -0.4 and -0.6 for both men and women. These effects diminish for high-income individuals. The family earnings elasticity of demand is weak, but education has strong negative effects on smoking, especially for high-income respondents. Own-earnings decrease individuals' price sensitivity. Employment status is influential even after controlling for income, education, and other factors. The presence of young children reduces smoking, with the effect most pronounced for women.

Suggested Citation

Hersch, Joni, Gender, Income Levels, and the Demand for Cigarettes (October 2000). Available at SSRN: https://ssrn.com/abstract=247822 or http://dx.doi.org/10.2139/ssrn.247822

Joni Hersch (Contact Author)

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Vanderbilt University - Owen Graduate School of Management

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