Cigarette smokers earn significantly less than nonsmokers, but the magnitude of the smoking wage gap and the pathways by which it originates are unclear. Proposed mechanisms often focus on spot differences in employee productivity or employer preferences, neglecting the dynamic nature of human...

We model the future tobacco consumption, size of smoking population and governmental tax revenues in the Czech Republic. The main assumption of our model states that smokers determine their future tobacco consumption behavior as adolescents. Further assumptions make the model applicable to the...