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The Effects of the Opioid Crisis on Employment: Evidence from Labor Market Flows

Author

Listed:
  • Anita Mukherjee
  • Daniel W. Sacks
  • Hoyoung Yoo

Abstract

We show that the opioid crisis slows transitions to employment from unemployment and nonparticipation. We identify the effect of the opioid crisis from cross-state variation in triplicate prescribing regulations, which produced long-lasting reductions in opioid use by reducing the initial distribution of the blockbuster opioid OxyContin. Difference-in-differences estimates show that triplicate regulations induce unemployed and nonparticipating workers in triplicate states to return to employment about 10 percent faster than workers in nontriplicate states. These estimates imply a 1.1 percentage point higher level of employment in steady state.

Suggested Citation

  • Anita Mukherjee & Daniel W. Sacks & Hoyoung Yoo, 2025. "The Effects of the Opioid Crisis on Employment: Evidence from Labor Market Flows," Journal of Human Resources, University of Wisconsin Press, vol. 60(3), pages 780-811.
    • Handle: RePEc:uwp:jhriss:v:60:y:2025:i:3:p:780-811
    Note: DOI: https://doi.org/10.3368/jhr.1121-12018R2
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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy

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