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Illegal Drug Use and Employment

  • Jeff DeSimone

    (East Carolina University and National Bureau of Economic Research)

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.

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File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?JOLE200407
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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 20 (2002)
Issue (Month): 4 (October)
Pages: 952-977

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Handle: RePEc:ucp:jlabec:v:20:y:2002:i:4:p:952-951
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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