IDEAS home Printed from https://ideas.repec.org/a/ucp/jlabec/v20y2002i4p952-951.html
   My bibliography  Save this article

Illegal Drug Use and Employment

Author

Listed:
  • 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.

Suggested Citation

  • Jeff DeSimone, 2002. "Illegal Drug Use and Employment," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 952-977, October.
  • Handle: RePEc:ucp:jlabec:v:20:y:2002:i:4:p:952-951
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/342893
    File Function: main text
    Download Restriction: Access to the online full text or PDF requires a subscription.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:aph:ajpbhl:1993:83:6:851-855_8 is not listed on IDEAS
    2. Andrew M. Gill & Robert J. Michaels, 1992. "Does Drug Use Lower Wages?," ILR Review, Cornell University, ILR School, vol. 45(3), pages 419-434, April.
    3. Charles A. Register & Donald R. Williams, 1992. "Labor Market Effects of Marijuana and Cocaine Use among Young Men," ILR Review, Cornell University, ILR School, vol. 45(3), pages 435-448, April.
    4. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    5. Saffer, Henry & Chaloupka, Frank, 1999. "The Demand for Illicit Drugs," Economic Inquiry, Western Economic Association International, vol. 37(3), pages 401-411, July.
    6. Zarkin, Gary A. & Mroz, Thomas A. & Bray, Jeremy W. & French, Michael T., 1998. "The relationship between drug use and labor supply for young men," Labour Economics, Elsevier, vol. 5(4), pages 385-409, December.
    7. Chiswick, Barry R, 1986. "Family Effects in Simple Models of Education, Occupational Status and Earnings: Findings from the Wisconsin and Kalamazoo Studies: Comment," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 116-120, July.
    8. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    9. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-951, July.
    10. Richard W. Blundell & Richard J. Smith, 1989. "Estimation in a Class of Simultaneous Equation Limited Dependent Variable Models," Review of Economic Studies, Oxford University Press, vol. 56(1), pages 37-57.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:v:20:y:2002:i:4:p:952-951. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division). General contact details of provider: http://www.journals.uchicago.edu/JOLE/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.