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The effect of obesity, alcohol misuse and smoking on employment and hours worked: evidence from the Icelandic economic collapse

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Abstract

In this study the relationship between obesity, alcohol misuse, smoking and changes in quantity of labor supplied during an economic meltdown are examined. The data used stem from a health and lifestyle panel survey carried out by the Public Health Institute of Iceland in 2007 and 2009. Probit analysis was used to assess if pre-crisis body weight, alcohol misuse or smoking were related to subsequent job-loss or a reduction in hours worked following the 2008 economic collapse in Iceland. Results indicated that body weight, alcohol misuse and smoking are related to reductions in quantity of labor supplied for females only. Female body mass index was positively related to the probability of a reduction in quantity of labor supplied, while alcohol misuse and smoking were negatively related to the probability of decreasing hours worked for females.

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Notes

  1. The Variance Inflation Factor (VIF) measures the impact of collinearity among the X's in a regression model on the precision of estimation. It expresses the degree to which collinearity among the predictors degrades the precision of an estimate. The VIF is based on examination of the relationship between the predictor variables. It is calculated in the following way; VIFj = 1/(1 − R 2j ), j = 1,…, p, where p is the number of predictor variables. Generally a VIF value greater than 10 is of concern (Chatterjee et al. 2000).

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Acknowledgments

Funding from the Icelandic Research Fund (IRF) is gratefully acknowledged (Grant number 130611-051).

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Authors and Affiliations

  1. Department of Economics, University of Iceland, Oddi v/Sturlugötu, 107, Reykjavik, Iceland

    Tinna Laufey Ásgeirsdóttir, Harpa H. Berndsen, Bryndís Þ. Guðmundsdóttir, Bryndís A. Gunnarsdóttir & Hugrún J. Halldórsdóttir

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  1. Tinna Laufey Ásgeirsdóttir
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  2. Harpa H. Berndsen
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  3. Bryndís Þ. Guðmundsdóttir
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Correspondence to Tinna Laufey Ásgeirsdóttir.

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Ásgeirsdóttir, T.L., Berndsen, H.H., Guðmundsdóttir, B.Þ. et al. The effect of obesity, alcohol misuse and smoking on employment and hours worked: evidence from the Icelandic economic collapse. Rev Econ Household 14, 313–335 (2016). https://doi.org/10.1007/s11150-013-9225-6

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