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Wage and Employment Growth in America’s Drug Epidemic: Is All Growth Created Equal?

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  • Michael R Betz
  • Lauren E Jones

Abstract

The rise in drug overdose deaths in the United States since the turn of the millennium has been extraordinary. A popular narrative paints a picture whereby opioid overdoses among white, male, less-educated, rural workers have been caused by reduced economic opportunities borne by such people. In this article, we causally test the validity of this theory by using Bartik-type variables to explore the relationship between local economic conditions and county opioid overdose death rates. We add to the literature by exploring how both employment and wage growth in different types of industries are related to opioid overdose deaths for the population as a whole, as well as for rural (vs. urban), male (vs. female) and white (vs. black) populations. We find mixed evidence. Our results confirm that wage and employment growth in industries more likely to employ low-skill workers are important protective factors for rural, white males. However, we also find evidence that economic improvements in low-skill industries are just as important in protecting blacks and women against opioid overdoses, and for workers in metro counties. We also find evidence that employment growth in high-paying industries has led to increases in opioid overdoes rates.

Suggested Citation

  • Michael R Betz & Lauren E Jones, 2018. "Wage and Employment Growth in America’s Drug Epidemic: Is All Growth Created Equal?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(5), pages 1357-1374.
    • Handle: RePEc:oup:ajagec:v:100:y:2018:i:5:p:1357-1374.
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    File URL: http://hdl.handle.net/10.1093/ajae/aay069
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    Citations

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    Cited by:

    1. Louis‐Philippe Beland & Jason Huh & Dongwoo Kim, 2024. "The effect of opioid use on traffic fatalities," Health Economics, John Wiley & Sons, Ltd., vol. 33(6), pages 1123-1132, June.
    2. Charlton, Diane & Countryman, Amanda & Manning, Dale & Ikeme, Sionegael, 2024. "U.S. Employment Exposure to Agricultural Trade Policy," 2024 Annual Meeting, July 28-30, New Orleans, LA 343771, Agricultural and Applied Economics Association.
    3. Park, Sujeong & Powell, David, 2021. "Is the rise in illicit opioids affecting labor supply and disability claiming rates?," Journal of Health Economics, Elsevier, vol. 76(C).
    4. Abby Alpert & William N Evans & Ethan M J Lieber & David Powell, 2023. "Origins of the Opioid Crisis and its Enduring Impacts," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(2), pages 1139-1179.
    5. Boslett, Andrew & Hill, Elaine, 2022. "Mortality during resource booms and busts," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    6. McGranahan, David & Parker, Timothy, 2021. "The Opioid Epidemic: A Geography in Two Phases," Economic Research Report 327197, United States Department of Agriculture, Economic Research Service.
    7. Lowenstein, Christopher, 2024. "“Deaths of despair” over the business cycle: New estimates from a shift-share instrumental variables approach," Economics & Human Biology, Elsevier, vol. 53(C).
    8. Yeonwoo Kim & Manuel Cano & Sehun Oh & Michael Betz, 2022. "County-Level Economic Changes and Drug Mortality in the United States: Evidence from the Great Recession," IJERPH, MDPI, vol. 19(23), pages 1-11, December.
    9. Samuel Taylor & Heather M. Stephens & Daniel Grossman, 2022. "The opioid crisis and economic distress: Consequences for population change," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 541-577, March.

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