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Discrimination and the Effects of Drug Testing on Black Employment

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  • Abigail Wozniak

    (University of Notre Dame, NBER, and IZA)

Abstract

A common assumption is that the rise of drug testing among U.S. employers must have had negative consequences for black employment. I use variation in the timing and nature of drug testing regulation to identify the impacts of testing on black hiring. I find that adoption of protesting legislation increases black employment in the testing sector by 7 percent to 30 percent and relative wages by 1.4 percent to 13.0 percent, with the largest shifts among low-skilled black men. The results are consistent with ex ante discrimination and suggest that drug testing may benefit African Americans by enabling nonusing blacks to prove their status to employers.

Suggested Citation

  • Abigail Wozniak, 2015. "Discrimination and the Effects of Drug Testing on Black Employment," The Review of Economics and Statistics, MIT Press, vol. 97(3), pages 548-566, July.
  • Handle: RePEc:tpr:restat:v:97:y:2015:i:2:p:548-566
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Drug testing and discrimination
      by Eric Crampton in Offsetting Behaviour on 2014-05-21 04:17:00

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    Cited by:

    1. Clifford, Robert & Shoag, Daniel, 2016. ""No More Credit Score": Emplyer Credit Check Bans and Signal Substitution," Working Paper Series 16-008, Harvard University, John F. Kennedy School of Government.
    2. Burton, Anne M. & Wasser, David N., 2025. "Revisiting the unintended consequences of Ban the Box," Journal of Public Economics, Elsevier, vol. 250(C).
    3. Allison Dwyer Emory, 2019. "Unintended Consequences: Protective State Policies and the Employment of Fathers with Criminal Records," Working Papers wp19-04-ff, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
    4. Kevin Lang & Ariella Kahn-Lang Spitzer, 2020. "Race Discrimination: An Economic Perspective," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 68-89, Spring.
    5. Sabia, Joseph J. & Nguyen, Thanh Tam, 2016. "The Effect of Medical Marijuana Laws on Labor Market Outcomes," IZA Discussion Papers 9831, IZA Network @ LISER.
    6. Krista Ruffini & Aaron Sojourner & Abigail Wozniak, 2021. "Who'S In And Who'S Out Under Workplace Covid Symptom Screening?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(2), pages 614-641, March.
    7. Rich, Judy, 2014. "What Do Field Experiments of Discrimination in Markets Tell Us? A Meta Analysis of Studies Conducted since 2000," IZA Discussion Papers 8584, IZA Network @ LISER.
    8. Laouénan, Morgane & Rathelot, Roland, 2017. "Ethnic Discrimination on an Online Marketplace of Vacation Rental," CAGE Online Working Paper Series 318, Competitive Advantage in the Global Economy (CAGE).
    9. Joshua M. Congdon-Hohman, 2018. "The persistent labor market effects of a criminal conviction and �Ban the Box� reforms," Working Papers 1808, College of the Holy Cross, Department of Economics.
    10. David Card & Fabrizio Colella & Rafael Lalive, 2025. "Gender Preferences in Job Vacancies and Workplace Gender Diversity," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 92(4), pages 2437-2471.
    11. Robert Clifford & Daniel Shoag, 2016. "“No more credit score”: employer credit check bans and signal substitution," Working Papers 16-10, Federal Reserve Bank of Boston.
    12. Ballance, Joshua & Clifford, Robert & Shoag, Daniel, 2020. "“No more credit score”: Employer credit check bans and signal substitution," Labour Economics, Elsevier, vol. 63(C).
    13. Benjamin Hansen & Drew McNichols, 2020. "Information and the Persistence of the Gender Wage Gap: Early Evidence from California's Salary History Ban," NBER Working Papers 27054, National Bureau of Economic Research, Inc.
    14. Conrad Miller, 2017. "The Persistent Effect of Temporary Affirmative Action," American Economic Journal: Applied Economics, American Economic Association, vol. 9(3), pages 152-190, July.
    15. Jennifer L. Doleac & Benjamin Hansen, 2016. "Does “Ban the Box” Help or Hurt Low-Skilled Workers? Statistical Discrimination and Employment Outcomes When Criminal Histories are Hidden," NBER Working Papers 22469, National Bureau of Economic Research, Inc.
    16. Dobkin, Carlos & Nicosia, Nancy & Weinberg, Matthew, 2014. "Are supply-side drug control efforts effective? Evaluating OTC regulations targeting methamphetamine precursors," Journal of Public Economics, Elsevier, vol. 120(C), pages 48-61.
    17. Xia, Xing, 2021. "Barrier to Entry or Signal of Quality? The Effects of Occupational Licensing on Minority Dental Assistants," Labour Economics, Elsevier, vol. 71(C).
    18. Patrick Bayer & Kerwin Kofi Charles & Ellora Derenoncourt, 2025. "Racial Inequality in the Labor Market," Working Papers 343, Princeton University, Department of Economics, Center for Economic Policy Studies..
    19. Laura Blattner & Scott Nelson, 2021. "How Costly is Noise? Data and Disparities in Consumer Credit," Papers 2105.07554, arXiv.org.
    20. Daniel Shoag & Stan Veuger, 2021. "Ban-the-Box Measures Help High-Crime Neighborhoods," Journal of Law and Economics, University of Chicago Press, vol. 64(1), pages 85-105.
    21. Vojtech Bartos, 2025. "Breaking Bias: Pathways to Reducing Discrimination," CESifo Working Paper Series 12045, CESifo.

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    Keywords

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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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