SMOKING BEHAVIOR AND HUMAN CAPITAL INVESTMENT: EVIDENCE FROM INDONESIAN HOUSEHOLD
Abstract
This study aims at estimating the difference health and education performance between children with
exposure to smoke and those who are not at home. An environment with the extreme smoke condition has
adverse health effects. This study utilizes longitudinal data namely Indonesia Family Life Survey period
2007 and 2014 (IFLS4 and IFLS5). We use the Propensity Score Matching (PSM) method and the
Average Treatment Effect on Treated (ATT). The health indicator is proxied by body mass index (BMI) and
educational achievement proxied with children cognitive ability. The results show that children who grow
in a household with active smoker tend to have lower health status and educational attainment compare to
children who are not. This study recommends public policy for banning smoking in public areas as well as
inside building such as house and office in Indonesia.