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Wissmann, Daniel (2022): Finally a Smoking Gun? Compensating Differentials and the Introduction of Smoking Bans. In: American Economic Journal: Applied Economics, Bd. 14, Nr. 1: S. 75-106

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Abstract

Using the staggered introduction of smoking bans in the German hospitality industry over 2007-2008, I find a robust 2.4 percent decline in the daily earnings of workers in bars and restaurants associated with the most comprehensive smoking ban. This effect is unlikely to be driven by a decline in hospitality revenues or hours worked but is consistent with a simple model of compensating differentials.

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