Impact of smoke-free laws on hospitality businesses in the European perspective
|Author:||Bc. Josef Simpartl|
|Year:||2020 - summer|
|Leaders:|| doc. Petr Janský Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Ever since smoke-free laws regarding the hospitality business were proposed, there was an argument
that these policies were going to harm their revenues and employment. This bachelor thesis
examines this argument in the European context. The examination is divided into three parts.
First, it aims to distinguish between effects of two distinctive forms of smoke-free laws. Second, it
analyzes the impact of smoke-free policies over time. Third, it attempts to assess differences of their
impact based on regional or socio-economic differences. Using difference-in-differences analysis of
administrative annual data from Eurostat database, this thesis does not find any permanent effect
of smoke-free laws on revenues or employment of hospitality businesses. The results of the analysis
also show, that if there was any significant impact throughout the first years of the smoke-free
law’s validity, it was always short-lasting. Still, the over time impacts of the individual forms of
smoke-free laws differ. In case of a partial smoke-free law, there is a statistically significant negative
impact on turnover immediately after its implementation and a positive impact on employment in
the third and fourth year after its implementation. The complete smoking ban does not exhibit
any statistically significant impact at all. In case of differences in impacts based on regions, no
significant result can be concluded due to a high risk of including other factors that could influence
turnovers and employment. The differences based on socio-economic factors appear to be more
useful to observe, even though they display no statistically significant result in the short-term.
Differences based on the long-term are generally at high risk of being biased.