The Economics of Preemployment Drug Testing
AbstractA labor market matching model shows that preemployment drug testing leads to a net improvement in social welfare, but the overall level of drug testing will exceed the social optimum. These results hold for wide ranges of parameter values. Drug testing results in fewer and shorter episodes of unemployment for drug-free workers while producing the opposite effect for drug users. Increases in the overall prevalence of drug use can lower the popularity of drug testing.
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Bibliographic InfoArticle provided by Missouri Valley Economic Association in its journal The Journal of Economics.
Volume (Year): 28 (2002)
Issue (Month): 2 ()
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- J00 - Labor and Demographic Economics - - General - - - General
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
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