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

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  • Ziggy MacDonald
  • Stephen Pudney

Abstract

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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  • Ziggy MacDonald & Stephen Pudney, "undated". "Illicit Drug Use and labour Market Achievement: Evidence from the UK," Discussion Papers in Public Sector Economics 98/2, Division of Economics, School of Business, University of Leicester.
    • Handle: RePEc:lec:lpserc:98/2
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    References listed on IDEAS

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    1. Robert Kaestner, 1994. "The Effect of Illicit Drug Use on the Labor Supply of Young Adults," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 126-155.
    2. Simon Burgess & Carol Propper, 1998. "Early Health Related Behaviours and their Impact on Later Life Chances: Evidence from the US (OUT (publ. in Health Economics, 7(5), 1998)," CASE Papers 006, Centre for Analysis of Social Exclusion, LSE.
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    5. Andrew M. Gill & Robert J. Michaels, 1992. "Does Drug Use Lower Wages?," ILR Review, Cornell University, ILR School, vol. 45(3), pages 419-434, April.
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    7. Ziggy MacDonald, "undated". "The Demand for Illicit Drugs in the UK: Survey Evidence," Discussion Papers in Economics 97/5, Division of Economics, School of Business, University of Leicester.
    8. 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.
    9. Sickles, Robin & Taubman, Paul, 1991. "Who Uses Illegal Drugs?," American Economic Review, American Economic Association, vol. 81(2), pages 248-251, May.
    10. 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.
    11. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    12. Simon Burgess & Carol Propper, 1998. "Early Health Related Behaviours and their Impact on Later Life Chances: Evidence from the US (OUT (publ. in Health Economics, 7(5), 1998)," CASE Papers case06, Centre for Analysis of Social Exclusion, LSE.
    13. 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, August.
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    Cited by:

    1. van Ours, J.C., 2005. "Cannabis, Cocaine and the Wages of Prime Age Males," Other publications TiSEM 1b74e15f-3dda-4ac9-bbc0-d, Tilburg University, School of Economics and Management.
    2. Jan C. van Ours, 2006. "Cannabis, cocaine and jobs," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(7), pages 897-917, November.
    3. Carlos Casacuberta & Mariana Gerstenblüth & Patricia Triunfo, 2012. "Aportes del análisis económico al estudio de las drogas," Documentos de Trabajo (working papers) 0112, Department of Economics - dECON.
    4. Jenny Williams & Christopher L. Skeels, 2006. "The impact of cannabis and cigarette use on health," Department of Economics - Working Papers Series 969, The University of Melbourne.
    5. Jenny Williams & Christopher Skeels, 2006. "The Impact of Cannabis Use on Health," De Economist, Springer, vol. 154(4), pages 517-546, December.
    6. Mohamed Abdallah Ali & Mazhar Mughal & Charles Kodjo Mawusi, 2021. "Does Khat Consumption Affect Work Performance ? A Micro-Perspective from Djibouti," Working papers of Transitions Energétiques et Environnementales (TREE) hal-03375659, HAL.
    7. Preety Ramful & Xueyan Zhao, 2009. "Participation in marijuana, cocaine and heroin consumption in Australia: a multivariate probit approach," Applied Economics, Taylor & Francis Journals, vol. 41(4), pages 481-496.
    8. Alex Acworth & Nicolas de Roos & Hajime Katayama, 2012. "Substance use and adolescent sexual activity," Applied Economics, Taylor & Francis Journals, vol. 44(9), pages 1067-1079, March.
    9. Pudney, Stephen & Bryan, Mark & DelBono, Emilia, 2013. "Licensing and regulation of the cannabis market in England and Wales: Towards a cost-benefit analysis," MPRA Paper 50365, University Library of Munich, Germany.
    10. Ziggy MacDonald & Michael Shields, "undated". "The Impact of Alcohol Use on Occupational Attainment and Wages," Discussion Papers in Public Sector Economics 98/8, Division of Economics, School of Business, University of Leicester.
    11. Roger Bowles & Chrisostomos Florackis, 2012. "Impatience, reputation and offending," Applied Economics, Taylor & Francis Journals, vol. 44(2), pages 177-187, January.

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