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Does drug use lower wages?

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Author Info
Andrew M. Gill
Robert J. Michaels
Abstract

This study, using microdata from the 1980 and 1984 waves of the National Longitudinal Survey of Youth, examines the effects of drug use on wages and employment. Contrary to most previous researchers' findings that illegal drug use negatively affects earnings, this analysis suggests that, once an allowance is made for self-selection effects (that is, unobservable factors simultaneously affecting wages and the decision to use drugs), drug users actually received higher wages than non-drug users. A similar analysis of employment effects shows that the sample of all drug users (which included users of "hard" and "soft" drugs) had lower employment levels than non-drug users, but the smaller sample consisting only of users of hard drugs, surprisingly, did not. (Abstract courtesy JSTOR.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 45 (1992)
Issue (Month): 3 (April)
Pages: 419-434
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ilr:articl:v:45:y:1992:i:3:p:419-434

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  1. Robert Kaestner, 1998. "Does Drug Use Cause Poverty?," NBER Working Papers 6406, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
    • Robert Kaestner, 1999. "Does Drug Use Cause Poverty?," NBER Chapters, in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometrics and Behavioral Economic Research, pages 327-368 National Bureau of Economic Research, Inc. [Downloadable!]
  2. Robert Kaestner, 1995. "The Effects of Cocaine and Marijuana Use on Marriage and Marital Stability," NBER Working Papers 5038, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Molinari, Francesca, 2005. "Missing Treatments," Working Papers 05-11, Cornell University, Center for Analytic Economics. [Downloadable!]
  4. Suryadipta Roy, 2007. "Are Illegal Drugs Inferior Goods in the US?," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(3), pages 303-314, September. [Downloadable!] (restricted)
  5. Jenny Williams & Christopher Skeels, 2006. "The Impact of Cannabis Use on Health," De Economist, Springer, vol. 154(4), pages 517-546, December. [Downloadable!] (restricted)
  6. Tekin, Erdal, 2002. "Employment, Wages, and Alcohol Consumption in Russia: Evidence from Panel Data," IZA Discussion Papers 432, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Robert Kaestner, 1996. "Drug Use and AFDC Participation: Is There a Connection?," NBER Working Papers 5555, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Phillip B. Levine & Tara A. Gustafson & Ann D. Velenchik, 1995. "More Bad News for Smokers? The Effects of Cigarette Smoking on Labor Market Outcomes," NBER Working Papers 5270, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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