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The economic impact of Mexico City's smoke-free law

OBJECTIVE: To evaluate the economic impact of Mexico City's 2008 smoke-free law—The Non-Smokers' Health Protection Law on restaurants, bars and nightclubs. MATERIAL AND METHODS: We used the Monthly Services Survey of businesses from January 2005 to April 2009—with revenues, employment and...

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Autores principales: Guerrero López, Carlos Manuel, Jiménez Ruiz, Jorge Alberto, Reynales Shigematsu, Luz Myriam, Waters, Hugh R
Formato: Online Artículo Texto
Lenguaje:English
Publicado: BMJ Group 2011
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3122880/
https://www.ncbi.nlm.nih.gov/pubmed/21292808
http://dx.doi.org/10.1136/tc.2010.036467
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author Guerrero López, Carlos Manuel
Jiménez Ruiz, Jorge Alberto
Reynales Shigematsu, Luz Myriam
Waters, Hugh R
author_facet Guerrero López, Carlos Manuel
Jiménez Ruiz, Jorge Alberto
Reynales Shigematsu, Luz Myriam
Waters, Hugh R
author_sort Guerrero López, Carlos Manuel
collection PubMed
description OBJECTIVE: To evaluate the economic impact of Mexico City's 2008 smoke-free law—The Non-Smokers' Health Protection Law on restaurants, bars and nightclubs. MATERIAL AND METHODS: We used the Monthly Services Survey of businesses from January 2005 to April 2009—with revenues, employment and payments to employees as the principal outcomes. The results are estimated using a differences-in-differences regression model with fixed effects. The states of Jalisco, Nuevo León and México, where the law was not in effect, serve as a counterfactual comparison group. RESULTS: In restaurants, after accounting for observable factors and the fixed effects, there was a 24.8% increase in restaurants' revenue associated with the smoke-free law. This difference is not statistically significant but shows that, on average, restaurants did not suffer economically as a result of the law. Total wages increased by 28.2% and employment increased by 16.2%. In nightclubs, bars and taverns there was a decrease of 1.5% in revenues and an increase of 0.1% and 3.0%, respectively, in wages and employment. None of these effects are statistically significant in multivariate analysis. CONCLUSIONS: There is no statistically significant evidence that the Mexico City smoke-free law had a negative impact on restaurants' income, employees' wages and levels of employment. On the contrary, the results show a positive, though statistically non-significant, impact of the law on most of these outcomes. Mexico City's experience suggests that smoke-free laws in Mexico and elsewhere will not hurt economic productivity in the restaurant and bar industries.
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spelling pubmed-31228802011-07-06 The economic impact of Mexico City's smoke-free law Guerrero López, Carlos Manuel Jiménez Ruiz, Jorge Alberto Reynales Shigematsu, Luz Myriam Waters, Hugh R Tob Control Research Paper OBJECTIVE: To evaluate the economic impact of Mexico City's 2008 smoke-free law—The Non-Smokers' Health Protection Law on restaurants, bars and nightclubs. MATERIAL AND METHODS: We used the Monthly Services Survey of businesses from January 2005 to April 2009—with revenues, employment and payments to employees as the principal outcomes. The results are estimated using a differences-in-differences regression model with fixed effects. The states of Jalisco, Nuevo León and México, where the law was not in effect, serve as a counterfactual comparison group. RESULTS: In restaurants, after accounting for observable factors and the fixed effects, there was a 24.8% increase in restaurants' revenue associated with the smoke-free law. This difference is not statistically significant but shows that, on average, restaurants did not suffer economically as a result of the law. Total wages increased by 28.2% and employment increased by 16.2%. In nightclubs, bars and taverns there was a decrease of 1.5% in revenues and an increase of 0.1% and 3.0%, respectively, in wages and employment. None of these effects are statistically significant in multivariate analysis. CONCLUSIONS: There is no statistically significant evidence that the Mexico City smoke-free law had a negative impact on restaurants' income, employees' wages and levels of employment. On the contrary, the results show a positive, though statistically non-significant, impact of the law on most of these outcomes. Mexico City's experience suggests that smoke-free laws in Mexico and elsewhere will not hurt economic productivity in the restaurant and bar industries. BMJ Group 2011-02-03 2011-07 /pmc/articles/PMC3122880/ /pubmed/21292808 http://dx.doi.org/10.1136/tc.2010.036467 Text en © 2011, Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://group.bmj.com/group/rights-licensing/permissions. This is an open-access article distributed under the terms of the Creative Commons Attribution Non-commercial License, which permits use, distribution, and reproduction in any medium, provided the original work is properly cited, the use is non commercial and is otherwise in compliance with the license. See: http://creativecommons.org/licenses/by-nc/2.0/ and http://creativecommons.org/licenses/by-nc/2.0/legalcode.
spellingShingle Research Paper
Guerrero López, Carlos Manuel
Jiménez Ruiz, Jorge Alberto
Reynales Shigematsu, Luz Myriam
Waters, Hugh R
The economic impact of Mexico City's smoke-free law
title The economic impact of Mexico City's smoke-free law
title_full The economic impact of Mexico City's smoke-free law
title_fullStr The economic impact of Mexico City's smoke-free law
title_full_unstemmed The economic impact of Mexico City's smoke-free law
title_short The economic impact of Mexico City's smoke-free law
title_sort economic impact of mexico city's smoke-free law
topic Research Paper
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3122880/
https://www.ncbi.nlm.nih.gov/pubmed/21292808
http://dx.doi.org/10.1136/tc.2010.036467
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