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Illicit Drug Use and labour Market Achievement: Evidence from the UK

  • Ziggy MacDonald

    ()

  • Stephen Pudney

    ()

This study, using data from the British Crime Survey (BCS), examines the effect of drug use on occupational achievement. It starts by attempting to overcome the identification problem that results from the limited set of drug use questions presented in the BCS. Taking this into account, and allowing for the endogeneity of drug use in equations for unemployment and labour market outcomes, that a mild positive association with 'soft' drugs and occupational achievement is observed that diminishes with age. This relationship holds for males but not for females. In contrast, it is also found that past use of 'hard' drugs significantly increases the likelihood of current unemployment, although it appears to be unrelated to occupational success, conditional on achieving employment.

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File URL: http://www.le.ac.uk/economics/research/RePEc/lec/lpserc/pserc98-2.pdf
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Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Public Sector Economics with number 98/2.

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Handle: RePEc:lec:lpserc:98/2
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  1. Sickles, Robin & Taubman, Paul, 1991. "Who Uses Illegal Drugs?," American Economic Review, American Economic Association, vol. 81(2), pages 248-51, May.
  2. Charles A. Register & Donald R. Williams, 1992. "Labor market effects of marijuana and cocaine use among young men," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 435-451, April.
  3. Gary S. Becker & Kevin M. Murphy, 1986. "A Theory of Rational Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.
  4. Andrew M. Gill & Robert J. Michaels, 1992. "Does drug use lower wages?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 419-434, April.
  5. Robert Kaestner, 1992. "The Effect of Illicit Drug Use on the Labor Supply of Young Adults," NBER Working Papers 4187, National Bureau of Economic Research, Inc.
  6. Kaestner, Robert, 1991. "The Effect of Illicit Drug Use on the Wages of Young Adults," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 381-412, October.
  7. Andrew M. Gill & Robert J. Michaels, 1991. "The Determinants Of Illegal Drug Use," Contemporary Economic Policy, Western Economic Association International, vol. 9(3), pages 93-105, 07.
  8. Ziggy MacDonald, . "The Demand for Illicit Drugs in the UK: Survey Evidence," Discussion Papers in Public Sector Economics 97/5, Department of Economics, University of Leicester.
  9. Simon M. Burgess & Carol Propper, 1998. "Early health-related behaviours and their impact on later life chances: evidence from the US," Health Economics, John Wiley & Sons, Ltd., vol. 7(5), pages 381-399.
  10. Ziggy MacDonald, . "The Demand for Illicit Drugs in the UK: Survey Evidence," Discussion Papers in Economics 97/5, Department of Economics, University of Leicester.
  11. Robert Kaestner, 1994. "New Estimates of the Effect of Marijuana and Cocaine Use on Wages," ILR Review, Cornell University, ILR School, vol. 47(3), pages 454-470, April.
  12. A. J. Culyer, 1973. "I. Should Social Policy Concern Itself with Drug "Abuse"?," Public Finance Review, , vol. 1(4), pages 449-456, October.
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