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Illegal drugs, education, and labor market outcomes

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  • Mezza, Alvaro
  • Buchinsky, Moshe

Abstract

In this paper we investigate the causal effects of consuming illegal drugs on educational attainment, employment, and wages. To identify these effects we develop and estimate a dynamic structural model to jointly consider decisions of whether to consume drugs, attend school, participate in the labor force, and save.

Suggested Citation

  • Mezza, Alvaro & Buchinsky, Moshe, 2021. "Illegal drugs, education, and labor market outcomes," Journal of Econometrics, Elsevier, vol. 223(2), pages 454-484.
  • Handle: RePEc:eee:econom:v:223:y:2021:i:2:p:454-484
    DOI: 10.1016/j.jeconom.2019.03.009
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    1. Lonsky, Jakub & Ruiz, Isabel & Vargas-Silva, Carlos, 2021. "Trade Networks, Heroin Markets, and the Labor Market Outcomes of Vietnam Veterans," GLO Discussion Paper Series 974, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Illegal drugs; Educational attainment; Employment; Wages; Structural estimation;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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