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Illicit drug use and labour market achievement: evidence from the UK

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  • Ziggy MacDonald
  • Stephen Pudney

Abstract

This study, using data from the British Crime Survey (BCS), examines the effect of drug use on occupational achievement. It starts by attempting to overcome the identification problem that results from the limited set of drug use questions presented in the BCS. Taking this into account, and allowing for the endogeneity of drug use in equations for unemployment and labour market outcomes, that a mild positive association with 'soft' drugs and occupational achievement is observed that diminishes with age. This relationship holds for males but not for females. In contrast, it is also found that past use of 'hard' drugs significantly increases the likelihood of current unemployment, although it appears to be unrelated to occupational success, conditional on achieving employment.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 33 (2001)
Issue (Month): 13 ()
Pages: 1655-1668

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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1655-1668

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  1. Robert Kaestner, 1994. "The Effect of Illicit Drug Use on the Labor Supply of Young Adults," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 126-155.
  2. Robert Kaestner, 1990. "The Effect of Illicit Drug Use on the Wages of Young Adults," NBER Working Papers 3535, National Bureau of Economic Research, Inc.
  3. Sickles, Robin & Taubman, Paul, 1991. "Who Uses Illegal Drugs?," American Economic Review, American Economic Association, vol. 81(2), pages 248-51, May.
  4. Gary S. Becker & Kevin M. Murphy, 1986. "A Theory of Rational Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.
  5. Ziggy MacDonald, . "The Demand for Illicit Drugs in the UK: Survey Evidence," Discussion Papers in Economics 97/5, Department of Economics, University of Leicester.
  6. Andrew M. Gill & Robert J. Michaels, 1992. "Does drug use lower wages?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 419-434, April.
  7. Charles A. Register & Donald R. Williams, 1992. "Labor market effects of marijuana and cocaine use among young men," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 435-451, April.
  8. Robert Kaestner, 1994. "New estimates of the effect of marijuana and cocaine use on wages," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(3), pages 454-470, April.
  9. Ziggy MacDonald, . "The Demand for Illicit Drugs in the UK: Survey Evidence," Discussion Papers in Public Sector Economics 97/5, Department of Economics, University of Leicester.
  10. Simon M. Burgess & Carol Propper, 1998. "Early health-related behaviours and their impact on later life chances: evidence from the US," Health Economics, John Wiley & Sons, Ltd., vol. 7(5), pages 381-399.
  11. Andrew M. Gill & Robert J. Michaels, 1991. "The Determinants Of Illegal Drug Use," Contemporary Economic Policy, Western Economic Association International, vol. 9(3), pages 93-105, 07.
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Cited by:
  1. Jenny Williams & Christopher L. Skeels, 2006. "The impact of cannabis and cigarette use on health," Department of Economics - Working Papers Series 969, The University of Melbourne.
  2. Jenny Williams & Christopher Skeels, 2006. "The Impact of Cannabis Use on Health," De Economist, Springer, vol. 154(4), pages 517-546, December.
  3. Ours, J.C. van, 2005. "Cannabis, Cocaine and the Wages of Prime Age Males," Discussion Paper, Tilburg University, Center for Economic Research 2005-14, Tilburg University, Center for Economic Research.
  4. Ziggy MacDonald & Michael Shields, . "The Impact of Alcohol Use on Occupational Attainment and Wages," Discussion Papers in Public Sector Economics 98/8, Department of Economics, University of Leicester.
  5. Pudney, Stephen & Bryan, Mark & DelBono, Emilia, 2013. "Licensing and regulation of the cannabis market in England and Wales: Towards a cost-benefit analysis," MPRA Paper 50365, University Library of Munich, Germany.
  6. Ours, J.C. van, 2005. "Cannabis, Cocaine and Jobs," Discussion Paper, Tilburg University, Center for Economic Research 2005-15, Tilburg University, Center for Economic Research.
  7. Carlos Casacuberta & Mariana Gerstenblüth & Patricia Triunfo, 2012. "Aportes del análisis económico al estudio de las drogas," Documentos de Trabajo (working papers) 0112, Department of Economics - dECON.

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