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Does Drug Use Cause Poverty?

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  • Robert Kaestner

Abstract

In this study, I examine the effect of drug use on poverty. The main objective of the paper is to provide descriptive empirical information about the relationship between drug use and poverty, and to explore, in a preliminary fashion, the question of whether drug use causes poverty. Toward this end, I present the results of both descriptive and multivariate analyses of the relationship between drug use and poverty for two national samples of young adults. One sample is drawn from the National Household Survey of Drug Abuse (NHSDA), and the other from the National Longitudinal Survey of Youth (NLSY). The results of the analysis indicate that for both samples, drug use is associated with greater poverty.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6406.

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Date of creation: Feb 1998
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Publication status: published as The Economic Analysis of Substance Use and Abuse. Chaloupka, Frank J., Michael Grossman, Warren K. Bickel, and Henry Saffer, eds., Chicago: The University of Chicago Press, 1999, pp. 327-355.
Handle: RePEc:nbr:nberwo:6406

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References

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  1. 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.
  2. 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.
  3. Robert Kaestner, 1998. "Drug use and AFDC participation: Is there a connection?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 17(3), pages 495-520.
  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, Chicago - Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.
  5. 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.
  6. Robert Kaestner, 1995. "The Effects of Cocaine and Marijuana Use on Marriage and Marital Stability," NBER Working Papers 5038, National Bureau of Economic Research, Inc.
  7. Becker, G.S. & Mulligan, C.B., 1994. "On the Endogenous Determination of Time Preference," University of Chicago - Economics Research Center, Chicago - Economics Research Center 94-2, Chicago - Economics Research Center.
  8. Barbara Mensch & Denise Kandel, 1992. "Drug use as a risk factor for premarital teen pregnancy and abortion in a National Sample of Young White Women," Demography, Springer, Springer, vol. 29(3), pages 409-429, August.
  9. Kaestner, Robert, 1991. "The Effect of Illicit Drug Use on the Wages of Young Adults," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 9(4), pages 381-412, October.
  10. 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.
  11. Robert Kaestner, 1998. "Drug Use, Culture, and Welfare Incentives: Correlates of Family Structure and Out-of-Wedlock Birth," Eastern Economic Journal, Eastern Economic Association, vol. 24(4), pages 395-416, Fall.
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Cited by:
  1. Abigail K. Wozniak, 2014. "Discrimination and the Effects of Drug Testing on Black Employment," NBER Working Papers 20095, National Bureau of Economic Research, Inc.
  2. 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.

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