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The Effect of Illicit Drug Use on the Labor Supply of Young Adults

  • Robert Kaestner

This paper analyzes the effects of illicit drug use on the labor supply of a sample of young adults using data from the National Longitudinal Survey of Youth. The paper investigates whether the frequency and timing of marijuana and cocaine use are systematically related to labor supply. and presents both cross sectional and longitudinal estimates. The cross sectional results are consistent with those of previous researchers. and suggest that illicit drug use has large, negative effects on labor supply. The longitudinal results. however, suggest that illicit drug use does not have a significant adverse impact on labor supply.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4187.

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Date of creation: Oct 1992
Date of revision:
Publication status: published as The Journal of Human Resources, vol. 29, No. 1, Winter 1994, pp. 126-155.
Handle: RePEc:nbr:nberwo:4187
Note: HE
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  1. Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
  2. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-99, July.
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