The Long-Term Impact of In-Utero Cigarette Taxes on Adult Prenatal Smoking

Abstract

This study examines the long-term link between in-utero cigarette taxes and adult prenatal smoking. We use U.S. birth certificate records to demonstrate that exposure to higher in-utero cigarette taxes (over 1965-2001) reduces later-life adult pre-pregnancy and prenatal smoking. We also show that higher in-utero cigarette taxes have long-lasting effects on adult health, and intergenerational consequences for infant health. Finally, we demonstrate that larger in-utero tax responsiveness correlates with smaller contemporary cigarette tax responsiveness, suggesting that higher in-utero taxes may alter the composition of remaining smokers and contribute to reductions in contemporary cigarette tax responsiveness.

Note:
Funding Information: Research reported in this publication was supported by the National Institute on Drug Abuse of the National Institutes of Health under Award Number R01DA045016 (PI: Pesko).

Declaration of Interests: Dr. Pesko reports separate funding exceeding $10,000 over the past three years from the American Cancer Society, University of Kentucky’s Institute for the Study of Free Enterprise, and National Heart, Lung, and Blood Institute. Dr. Pesko is an executive board member of the Tobacco Online Policy Seminar. Dr. Phillips reports separate funding exceeding $10,000 over the past three years from the American Cancer Society. No other authors have anything to disclose.

Keywords: Prenatal smoking, cigarette taxes, long-term, early-life influences, human capital

JEL Classification: I12, I18, H71, H75