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Does Drug Use Cause Poverty?

In: The Economic Analysis of Substance Use and Abuse: An Integration of Econometric and Behavioral Economic Research

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  • Robert Kaestner

Abstract

In this study, I examine the effect of drug use on poverty. The main objective of the paper is to provide descriptive empirical information about the relationship between drug use and poverty, and to explore, in a preliminary fashion, the question of whether drug use causes poverty. Toward this end, I present the results of both descriptive and multivariate analyses of the relationship between drug use and poverty for two national samples of young adults. One sample is drawn from the National Household Survey of Drug Abuse (NHSDA), and the other from the National Longitudinal Survey of Youth (NLSY). The results of the analysis indicate that for both samples, drug use is associated with greater poverty.
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Suggested Citation

  • Robert Kaestner, 1999. "Does Drug Use Cause Poverty?," NBER Chapters, in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometric and Behavioral Economic Research, pages 327-368, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:11165
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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. Gary S. Becker & Casey B. Mulligan, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 729-758.
    3. Robert Kaestner, 1995. "The Effects of Cocaine and Marijuana Use on Marriage and Marital Stability," NBER Working Papers 5038, National Bureau of Economic Research, Inc.
    4. Robert Kaestner, 1998. "Drug use and AFDC participation: Is there a connection?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 17(3), pages 495-520.
    5. Charles A. Register & Donald R. Williams, 1992. "Labor Market Effects of Marijuana and Cocaine Use among Young Men," ILR Review, Cornell University, ILR School, vol. 45(3), pages 435-448, April.
    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. Barbara Mensch & Denise Kandel, 1992. "Drug use as a risk factor for premarital teen pregnancy and abortion in a National Sample of Young White Women," Demography, Springer;Population Association of America (PAA), vol. 29(3), pages 409-429, August.
    8. 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.
    9. 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.
    10. 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.
    11. Robert Kaestner, 1998. "Drug Use, Culture, and Welfare Incentives: Correlates of Family Structure and Out-of-Wedlock Birth," Eastern Economic Journal, Eastern Economic Association, vol. 24(4), pages 395-416, Fall.
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    Cited by:

    1. Abigail Wozniak, 2015. "Discrimination and the Effects of Drug Testing on Black Employment," The Review of Economics and Statistics, MIT Press, vol. 97(3), pages 548-566, July.
    2. 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.
    3. Beau Kilmer & Rosalie Liccardo Pacula, 2010. "Preventing Drug Use," NBER Chapters, in: Targeting Investments in Children: Fighting Poverty When Resources Are Limited, pages 181-220, National Bureau of Economic Research, Inc.

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