Youth smoking can biologically reduce learning productivity. It can also reduce youths’ motivation to go to school, where smoking is forbidden. Using rich household survey data from rural China, this study investigates the effect of youth smoking on educational outcomes. Youth smoking is clearly an endogenous variable; to obtain consistent estimates of its impact, the authors used counts of registered alcohol vendors and a food price index as instrumental variables.
Waseda Institute for Advanced Study, Waseda University, Tokyo, Japan.