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Illegal Drug Use and Employment

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  • Jeff DeSimone

    (East Carolina University and National Bureau of Economic Research)

Abstract

This article investigates the relationship between employment and the use of marijuana and cocaine for males in National Longitudinal Survey of Youth data from 1984 and 1988. Previous studies yielding mixed evidence may have inadequately accounted for the simultaneity between drug consumption and employment. I implement an instrumental variable procedure that identifies drug use with variables that are empirically unrelated to employment, including the regional cocaine price and a state marijuana decriminalization indicator. Results indicate that the use of each drug substantially reduces the likelihood of employment. Exogeneity tests reveal that standard probit estimates are severely biased toward zero.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 20 (2002)
Issue (Month): 4 (October)
Pages: 952-977

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Handle: RePEc:ucp:jlabec:v:20:y:2002:i:4:p:952-951

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Web page: http://www.journals.uchicago.edu/JOLE/

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Cited by:
  1. Granger, Maury D. & Price, Gregory N., 2007. "The tree of science and original sin: Do christian religious beliefs constrain the supply of scientists?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(1), pages 144-160, February.
  2. Pinka Chatterji & Margarita Alegr´┐Ża & Mingshan Lu & David Takeuchi, 2007. "Psychiatric disorders and labor market outcomes: evidence from the National Latino and Asian American Study," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1069-1090.
  3. Waddell, G.R., 2012. "Adolescent drug use and the deterrent effect of school-imposed penalties," Economics of Education Review, Elsevier, vol. 31(6), pages 961-969.
  4. Humphreys, Brad & Nyman, John & Ruseski, Jane, 2011. "The Effect of Gambling on Health: Evidence from Canada," Working Papers 2011-18, University of Alberta, Department of Economics.
  5. Clements, Kenneth W. & Daryal, Mert, 2005. "Exogenous shocks and related goods: Drinking and the legalisation of marijuana," Economics Letters, Elsevier, vol. 89(1), pages 101-106, October.
  6. Yuriy Pylypchuk & Julie Hudson, 2009. "Immigrants and the use of preventive care in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 18(7), pages 783-806.
  7. Terza, Joseph V. & Basu, Anirban & Rathouz, Paul J., 2008. "Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling," Journal of Health Economics, Elsevier, vol. 27(3), pages 531-543, May.
  8. Abdulai, Awudu & Owusu, Victor & Goetz, Renan, 2008. "Property rights and investment in agriculture: Evidence for Ghana," MPRA Paper 37046, University Library of Munich, Germany.
  9. Ajay Mahal & Brendan O'Flaherty & David E. Bloom, 2009. "Needle Sharing and HIV Transmission: A Model with Markets and Purposive Behavior," NBER Working Papers 14823, National Bureau of Economic Research, Inc.
  10. Damien S.Eldridge & Ilke Onur & Malathi Velamuri & Cagatay Koc, 2013. "The Impact of Private Hospital Insurance on the Utilization of Hospital Care In Australia," Working Papers 2013.03, School of Economics, La Trobe University.
  11. Cowan, Benjamin W., 2011. "Forward-thinking teens: The effects of college costs on adolescent risky behavior," Economics of Education Review, Elsevier, vol. 30(5), pages 813-825, October.
  12. Ours, J.C. van, 2005. "Cannabis, Cocaine and Jobs," Discussion Paper 2005-15, Tilburg University, Center for Economic Research.
  13. Shao-Hsun Keng & Sheng-Jang Sheu, 2013. "The effect of stimulants and their combined use with cigarettes on mortality: the case of betel quid," The European Journal of Health Economics, Springer, vol. 14(4), pages 677-695, August.
  14. Pinka Chatterji, 2003. "Illicit Drug Use and Educational Attainment," NBER Working Papers 10045, National Bureau of Economic Research, Inc.
  15. Pinka Chatterji & Margarita Alegria & David Takeuchi, 2008. "Psychiatric Disorders and Labor Market Outcomes: Evidence from the National Comorbidity Survey - Replication," NBER Working Papers 14404, National Bureau of Economic Research, Inc.
  16. Beau Kilmer & Rosalie Liccardo Pacula, 2010. "Preventing Drug Use," NBER Chapters, in: Targeting Investments in Children: Fighting Poverty When Resources are Limited, pages 181-220 National Bureau of Economic Research, Inc.
  17. Jenny Williams & Christopher Skeels, 2006. "The Impact of Cannabis Use on Health," De Economist, Springer, vol. 154(4), pages 517-546, December.

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