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Illegal Drug Use and Employment

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  • 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
    DOI: 10.1086/342893
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    References listed on IDEAS

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    1. Saffer, Henry & Chaloupka, Frank, 1999. "The Demand for Illicit Drugs," Economic Inquiry, Western Economic Association International, vol. 37(3), pages 401-411, July.
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