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The Effect of Medical Marijuana Laws on Labor Market Outcomes

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  • Joseph J. Sabia
  • Thanh Tam Nguyen

Abstract

This study is the first to estimate the impact of state medical marijuana laws (MMLs) on labor market outcomes. First, using data from the National Survey of Drug Use and Health, we document that MMLs are associated with an increase in marijuana consumption among younger and older adult males, consistent with increases in use for both recreational and medicinal purposes. Then, using data from the Current Population Survey Outgoing Rotation Groups, we find no evidence that MMLs affect employment, hours, or wages among working-age adults, including among demographic groups whose marijuana consumption is most impacted by MMLs. Medical marijuana laws that provide access to open marijuana dispensaries only moderately depress wages among young men. We conclude that the labor market effects of MMLs are small.

Suggested Citation

  • Joseph J. Sabia & Thanh Tam Nguyen, 2018. "The Effect of Medical Marijuana Laws on Labor Market Outcomes," Journal of Law and Economics, University of Chicago Press, vol. 61(3), pages 361-396.
    • Handle: RePEc:ucp:jlawec:doi:10.1086/701193
    DOI: 10.1086/701193
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    Citations

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    Cited by:

    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. Johanna Catherine Maclean & Chandler McClellan & Michael F. Pesko & Daniel Polsky, 2023. "Medicaid reimbursement rates for primary care services and behavioral health outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 32(4), pages 873-909, April.
    3. Rahi Abouk & Keshar M. Ghimire & Johanna Catherine Maclean & David Powell, 2023. "Pain Management and Work Capacity: Evidence From Workers’ Compensation and Marijuana Legalization," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(3), pages 737-770, June.
    4. Borbely, Daniel & Lenhart, Otto & Norris, Jonathan & Romiti, Agnese, 2022. "Marijuana Legalization and Mental Health," IZA Discussion Papers 15729, Institute of Labor Economics (IZA).
    5. Dave, Dhaval & Liang, Yang & Pesko, Michael F. & Phillips, Serena & Sabia, Joseph J., 2023. "Have recreational marijuana laws undermined public health progress on adult tobacco use?," Journal of Health Economics, Elsevier, vol. 90(C).
    6. Jenny Williams & Rosalie Liccardo Pacula & Rosanna Smart, 2019. "De Facto or De Jure? Ethnic Differences in Quit Responses to Legal Protections of Medical Marijuana Dispensaries," NBER Working Papers 25555, National Bureau of Economic Research, Inc.
    7. Johanna Catherine Maclean & Keshar M. Ghimire & Lauren Hersch Nicholas, 2021. "Marijuana legalization and disability claiming," Health Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 453-469, February.
    8. Hamersma, Sarah & Maclean, Johanna Catherine, 2021. "Do expansions in adolescent access to public insurance affect the decisions of substance use disorder treatment providers?," Journal of Health Economics, Elsevier, vol. 76(C).
    9. Sabia, Joseph J. & Dave, Dhaval & Alotaibi, Fawaz & Rees, Daniel I., 2024. "The effects of recreational marijuana laws on drug use and crime," Journal of Public Economics, Elsevier, vol. 234(C).
    10. 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).
    11. 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.
    12. Jenny Williams & Jan C. van Ours, 2020. "Hazardous or not? Cannabis use and early labor market experiences of young men," Health Economics, John Wiley & Sons, Ltd., vol. 29(10), pages 1148-1160, October.
    13. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2019. "The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use," NBER Working Papers 26017, National Bureau of Economic Research, Inc.
    14. Petrova, Olga & Gray, Natallia, 2021. "The effects of medical marijuana laws on birth outcomes: Evidence from early adopting U.S. states," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 68-82.
    15. Monica Deza & Thanh Lu & Johanna Catherine Maclean, 2022. "Office‐based mental healthcare and juvenile arrests," Health Economics, John Wiley & Sons, Ltd., vol. 31(S2), pages 69-91, October.
    16. Bruijn, L. Michelle & Ribas, Rafael P., 2022. "“No drugs in my back yard:” The ambivalent reception of cannabis retailers," Journal of Economic Behavior & Organization, Elsevier, vol. 199(C), pages 103-121.
    17. Keshar M. Ghimire & Johanna Catherine Maclean, 2020. "Medical marijuana and workers' compensation claiming," Health Economics, John Wiley & Sons, Ltd., vol. 29(4), pages 419-434, April.
    18. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2020. "The effects of traditional cigarette and e-cigarette tax rates on adult tobacco product use," Journal of Risk and Uncertainty, Springer, vol. 60(3), pages 229-258, June.

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