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The Effect of Medical Marijuana Laws on Labor Market Outcomes

Author

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  • Sabia, Joseph J.

    () (San Diego State University)

  • Nguyen, Thanh Tam

    (San Diego State University)

Abstract

A number of recent studies have found that medical marijuana laws (MMLs) are associated with increased marijuana use among adults, in part due to spillover effects into the recreational market. This study is the first to explore the labor market consequences of MMLs. Using repeated cross-sections of the Current Population Survey from January 1990 to December 2014, we find that the enforcement of MMLs is associated with a 2 to 3 percent reduction in hourly earnings for young adult males. The effect is particularly pronounced when examining MMLs that include a collective cultivation provision. For women and older males, there is little evidence of adverse labor market effects of MMLs. We conclude that the health effects of MMLs may adversely affect labor market productivity of young males.

Suggested Citation

  • Sabia, Joseph J. & Nguyen, Thanh Tam, 2016. "The Effect of Medical Marijuana Laws on Labor Market Outcomes," IZA Discussion Papers 9831, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9831
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    References listed on IDEAS

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    Cited by:

    1. Anna Choi & Dhaval Dave & Joseph J. Sabia, 2016. "Smoke Gets in Your Eyes: Medical Marijuana Laws and Tobacco Use," NBER Working Papers 22554, National Bureau of Economic Research, Inc.
    2. Lauren Hersch Nicholas & Johanna Catherine Maclean, 2019. "The Effect of Medical Marijuana Laws on the Health and Labor Supply of Older Adults: Evidence from the Health and Retirement Study," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(2), pages 455-480, March.
    3. Hersch Nicholas, Lauren & Maclean, J. Catherine, 2017. "The Effect of Medical Marijuana Laws on the Labor Supply of Older Adults: Evidence from the Health and Retirement Study," IZA Discussion Papers 10489, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    medical marijuana laws; productivity; wages;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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