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New estimates of the effect of marijuana and cocaine use on wages

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Author Info
Robert Kaestner
Abstract

Using the 1984 and 1988 waves of the National Longitudinal Survey of Youth, this study provides an update of several previous cross-sectional estimates of the effect of illicit drug use on wages, as well as the first longitudinal estimates of that effect. The cross-sectional results, which are generally consistent with the surprising findings of previous research, suggest that illicit drug use has a large, positive effect on wages. The longitudinal estimates, which control for unobserved heterogeneity in the sample, are mixed: among men, the estimated wage effects of both marijuana and cocaine use are negative, but among women, the effect of cocaine use remains positive and large. Because the longitudinal model is imprecisely estimated, however, those results are inconclusive. (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): 47 (1994)
Issue (Month): 3 (April)
Pages: 454-470
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:47:y:1994:i:3:p:454-470

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  1. Jeremy W. Bray & Gary A. Zarkin & Chris Ringwalt & Junfeng Qi, 2000. "The relationship between marijuana initiation and dropping out of high school," Health Economics, John Wiley & Sons, Ltd., vol. 9(1), pages 9-18.
  2. 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!]
  3. Pinka Chatterji, 2003. "Illicit Drug Use and Educational Attainment," NBER Working Papers 10045, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. R. R. Bryant & A. Jayawardhana & V. A. Samaranayake & A. Wilhite, . "The impact of alcohol and drug use on employment: A labor market study using the National Longitudinal Survey of Youth," Institute for Research on Poverty Discussion Papers 1092-96, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  5. 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)
  6. Jenny Williams & Christopher Skeels, 2006. "The Impact of Cannabis Use on Health," De Economist, Springer, vol. 154(4), pages 517-546, December. [Downloadable!] (restricted)
  7. Heineck, Guido & Schwarze, Johannes, 2003. "Substance Use and Earnings: The Case of Smokers in Germany," IZA Discussion Papers 743, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Michael R. Pergamit et al., 2001. "The National Longitudinal Surveys," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 239-253, Spring. [Downloadable!] (restricted)
  9. Ziggy MacDonald & Stephen Pudney, . "The Wages of Sin? Illegal Drug Use and the Labour Market," Discussion Papers in Public Sector Economics 99/6, Department of Economics, University of Leicester. [Downloadable!]
  10. Robert Kaestner, 1996. "Drug Use and AFDC Participation: Is There a Connection?," NBER Working Papers 5555, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Jeffrey DeSimone, 1999. "Illegal Drug Use and Labor Supply," Working Papers 9906, East Carolina University, Department of Economics. [Downloadable!]
  12. Filip Palda, 2001. "Pain," Microeconomics 0111003, EconWPA. [Downloadable!]
  13. Ours, Jan C. van, 2005. "Cannabis, cocaine and wages of prime age males," Discussion Paper 14, Tilburg University, Center for Economic Research. [Downloadable!]
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