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Unemployment and drug treatment

Author

Listed:
  • Costa Storti, Cláudia
  • Grauwe, Paul
  • Sabadash, Anna
  • Montanari, Linda

Abstract

Background: Since 2007 the economic recession has hit most industrial countries and this raises the question of how economic hardship affects illicit drug users’ decisions to enter drug treatment. Methods: We test the hypothesis that an improvement in the employment prospects, as measured by a decline in unemployment, strengthens the intrinsic motivation of an unemployed drug user to enter treatment. Our hypothesis is that the “payoff” of entering treatment increases when the unemployed drug user has a greater probability of finding a job. We reviewed the literature and found considerable evidence to substantiate this effect. We tested the hypothesis econometrically using two different data sets, one EU-wide and one German data set. Results: Our main findings were that unemployment has a significant negative effect on the number of drug users entering treatment, i.e. when unemployment declines (increases) the number of drug treatment clients increases (declines). We also found that unemployed drug users entering treatment are most sensitive to variations in the economy-wide unemployment rate. Employed drug users, in contrast, are not influenced by these variations when deciding to enter treatment. Conclusion: Our empirical results confirm that the creation of job prospects adds significantly to the willingness of unemployed drug users to enter treatment. This lends support to the idea that drug treatment should be embedded in programmes to improve the job prospects of drug users.

Suggested Citation

  • Costa Storti, Cláudia & Grauwe, Paul & Sabadash, Anna & Montanari, Linda, 2011. "Unemployment and drug treatment," MPRA Paper 61799, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:61799
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    References listed on IDEAS

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    Cited by:

    1. Hunter, Mark, 2020. "Heroin hustles: Drugs and the laboring poor in South Africa," Social Science & Medicine, Elsevier, vol. 265(C).
    2. Johanna Catherine Maclean & Brady P. Horn & Jonathan H. Cantor, 2020. "Business Cycles And Admissions To Substance Abuse Treatment," Contemporary Economic Policy, Western Economic Association International, vol. 38(1), pages 139-154, January.
    3. Jonathan H. Cantor & Brady P. Horn & Johanna Catherine Maclean, 2013. "Recessions and Admissions to Substance Abuse Treatment," NBER Working Papers 19115, National Bureau of Economic Research, Inc.
    4. Johanna Catherine Maclean & Jonathan H. Cantor & Rosalie Liccardo Pacula, 2015. "Economic downturns and substance abuse treatment: Evidence from admissions data," DETU Working Papers 1504, Department of Economics, Temple University.
    5. Silvana Secinaro & Davide Calandra & Carolina Cappa & Emanuele Bignamini, 2020. "La qualit? dei dati all?interno dell?evoluzione dei servizi territoriali: il caso del Servizio Dipendenze," MECOSAN, FrancoAngeli Editore, vol. 0(116), pages 31-51.

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    More about this item

    Keywords

    economic recession; unemployment; treatment; illicit drug use;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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