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Marijuana legalization and disability claiming

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  • Johanna Catherine Maclean
  • Keshar M. Ghimire
  • Lauren Hersch Nicholas

Abstract

We study the effect of recent legalization of recreational marijuana use (RMLs) in the United States on Social Security Disability Insurance and Supplemental Security Income claiming, proxied by new applications and new benedficiaries, over the period 2001 to 2019. We combine administrative caseload data from the Social Security Administration with state policy changes using two-way fixed effects regression. We find that RML adoption increases new disability application rates. However, there is no change in new beneficiaries post-RML. We provide suggestive evidence that the observed changes in applications post-RML are potentially driven by increases in marijuana misuse and selective migration.

Suggested Citation

  • Johanna Catherine Maclean & Keshar M. Ghimire & Lauren Hersch Nicholas, 2017. "Marijuana legalization and disability claiming," NBER Working Papers 23862, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:23862
    Note: AG EH LE LS
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    1. Chris Sampson’s journal round-up for 8th March 2021
      by Chris Sampson in The Academic Health Economists' Blog on 2021-03-08 12:00:01

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    1. Thanh Lu, 2021. "Marijuana legalization and household spending on food and alcohol," Health Economics, John Wiley & Sons, Ltd., vol. 30(7), pages 1684-1696, July.
    2. Jason Brown & Elior Cohen & Alison Felix, 2023. "Economic Benefits and Social Costs of Legalizing Recreational Marijuana," Research Working Paper RWP 23-10, Federal Reserve Bank of Kansas City.
    3. Shyam Raman & Johanna Catherine Maclean & W. David Bradford & Coleman Drake, 2023. "Recreational cannabis and opioid distribution," Health Economics, John Wiley & Sons, Ltd., vol. 32(4), pages 747-754, April.
    4. Chakraborty Avinandan & Doremus Jacqueline & Stith Sarah, 2021. "The effects of recreational cannabis access on labor markets: evidence from Colorado," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-86, January.
    5. Thomas Lebesmuehlbacher & Rhet A. Smith, 2021. "The effect of medical cannabis laws on pharmaceutical marketing to physicians," Health Economics, John Wiley & Sons, Ltd., vol. 30(10), pages 2409-2436, September.

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    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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