How does actual unemployment and the perceived risk of joblessness affect smoking behavior? Gender and intra-family effects

Abstract

Using the 1999–2011 waves of the Panel Study of Income Dynamics, we examine how actual unemployment and the perceived risk of joblessness, as reflected by exogenous aggregate unemployment rates, are related to changes in smoking behavior. The analysis allows for intra-family and gender-specific effects. We find that among men, becoming unemployed initially has a favorable impact on smoking behavior, including a decreased likelihood of a smoking relapse and decreased cigarette consumption. However among men who are unemployed long term, some of these favorable effects attenuate. Among women, we find that becoming unemployed initially has a small impact on quitting smoking. However, being unemployed long term decreases their likelihood of quitting smoking. The perceived risk of unemployment has very little impact on men but affects women’s smoking behavior. Results indicate that women experiencing an increase in their state’s unemployment rate are more likely to change their smoking behavior favorably.