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Marijuana Consumption, Educational Outcomes and Labor Market Success: Evidence from Switzerland

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Author Info

  • Donata Bessey

    ()
    (Institute for Strategy and Business Economics, University of Zurich)

  • Uschi Backes-Gellner

    ()
    (Institute for Strategy and Business Economics, University of Zurich)

Abstract

In this paper, we analyze the impact of onset of marijuana consumption during different periods in youth on educational outcomes and labor market success using a Swiss data set. In order to deal with endogeneity, we estimate a multivariate probit model with an instrumental variables strategy. Our results seem to suggest that onset of marijuana consumption under age 14 leads to a signicantly lower probability of having at least a secondary education, and onset of consumption between age 15 and 16 as well as between age 17 and 18 leads to a signicantly lower probability of having a tertiary education. While we do not find any impact of marijuana consumption on the probability of being unemployed, onset of marijuana consumption under age 14 and between age 15 and 16 leads to a significantly higher probability of working less than 80%.

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File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0043_lhwpaper.pdf
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Bibliographic Info

Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0043.

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Length: 26 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:iso:educat:0043

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Keywords: Risky behavior; production of human capital; multivariate probit;

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  1. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  2. Pinka Chatterji & Jeffrey DeSimone, 2006. "High School Alcohol Use and Young Adult Labor Market Outcomes," NBER Working Papers 12529, National Bureau of Economic Research, Inc.
  3. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "MVPROBIT: Stata module to calculate multivariate probit regression using simulated maximum likelihood," Statistical Software Components S432601, Boston College Department of Economics, revised 25 Jan 2006.
  4. Jan C. van Ours, 2006. "Cannabis, cocaine and jobs," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(7), pages 897-917.
  5. Jenny Williams & Lisa Powell & Henry Wechsler, 2003. "Does alcohol consumption reduce human capital accumulation? Evidence from the College Alcohol Study," Applied Economics, Taylor & Francis Journals, vol. 35(10), pages 1227-1239.
  6. van Ours, Jan C., 2004. "A pint a day raises a man's pay; but smoking blows that gain away," Journal of Health Economics, Elsevier, vol. 23(5), pages 863-886, September.
  7. Hungerford, Thomas & Solon, Gary, 1987. "Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 175-77, February.
  8. Jeff DeSimone & Amy M. Wolaver, 2005. "Drinking and Academic Performance in High School," NBER Working Papers 11035, National Bureau of Economic Research, Inc.
  9. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
  10. Jan C. van Ours & Jenny Williams, 2007. "Why Parents Worry: Initiation into Cannabis Use by Youth and their Educational Attainment," Department of Economics - Working Papers Series 1013, The University of Melbourne.
  11. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
  12. Ours, J.C. van, 2004. "A pint a day raises a man's pay, but smoking blows that gain away," Open Access publications from Tilburg University urn:nbn:nl:ui:12-140957, Tilburg University.
  13. Phillip B. Levine & Tara Gustafson & Ann D. Velenchik, 1997. "More bad news for smokers? The effects of cigarette smoking on wages," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(3), pages 493-509, April.
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