The Economics of Happiness: Does Smoking Behaviour Bring Life (dis)satisfaction

This work investigates the association between smoking behavior and life satisfaction based on the cross-sectional data from Russian Longitudinal Monitoring Survey for the period of 2016. By analyzing this RLMS data, the next findings are received: current smokers have a tendency to be less satisfied with the quality of their life in contrast to those who do not smoke. Several methodological approaches were applied such as ordered probit and OLS estimation and also Lewbel’s instrumental variable approach is used to handle the potential endogeneity in the framework of tis study. Moreover, the method of cardinalization of life satisfaction is applied to be able to use OLS kind of estimation. Overall, from the results of this study it might be stated that nicotine addiction has a substantial negative effect on life satisfaction and this connection may be used to contribute to the current measures attempting to reduce smoking in Russia like anti-tobacco limitations, smoking bans and government health strategies.