IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v7y1998i3p229-245.html
   My bibliography  Save this article

Drug use, drug abuse, and labour market outcomes

Author

Listed:
  • Thomas C. Buchmueller
  • Samuel H. Zuvekas

Abstract

This paper examines the relationship between illicit drug use and labour market success, and in doing so addresses two shortcomings of the previous literature. First, unlike many previous analyses, ours accounts for differences in intensity of use using clinically based diagnostic measures. Second, while recent studies focus only on young adults, we analyze a prime‐age (30–45‐year‐olds) sample as well. Our results indicate that these differences are important. Similar to previous studies, we find evidence of a positive relationship between drug use and income for young workers. However, we also find some evidence of lower incomes for young workers reporting daily use of illicit drugs. For prime‐age men, we find strong evidence that problematic drug use (as indicated by either a diagnosis of pathological use or dependence or by daily use) is negatively related to income. We also find a negative relationship between problematic use and employment among prime‐age, but not younger, men. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • Thomas C. Buchmueller & Samuel H. Zuvekas, 1998. "Drug use, drug abuse, and labour market outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 7(3), pages 229-245, May.
    • Handle: RePEc:wly:hlthec:v:7:y:1998:i:3:p:229-245
    DOI: 10.1002/(SICI)1099-1050(199805)7:3<229::AID-HEC315>3.0.CO;2-R
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/(SICI)1099-1050(199805)7:33.0.CO;2-R
    Download Restriction: no
    File URL: https://libkey.io/10.1002/(SICI)1099-1050(199805)7:3<229::AID-HEC315>3.0.CO;2-R?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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. Mark B. Stewart, 1983. "On Least Squares Estimation when the Dependent Variable is Grouped," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 737-753.
    3. Mullahy, John & Sindelar, Jody, 1996. "Employment, unemployment, and problem drinking," Journal of Health Economics, Elsevier, vol. 15(4), pages 409-434, August.
    4. Tetsuji Yamada & Michael Kendix & Tadashi Yamada, 1993. "The Impact of Alcohol Consumption and Marijuana Use on High School Graduation," NBER Working Papers 4497, National Bureau of Economic Research, Inc.
    5. 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.
    6. French, Michael T. & Zarkin, Gary A., 1995. "Is moderate alcohol use related to wages? Evidence from four worksites," Journal of Health Economics, Elsevier, vol. 14(3), pages 319-344, August.
    7. McGuire, Thomas G. & Ruhm, Christopher J., 1993. "Workplace drug abuse policy," Journal of Health Economics, Elsevier, vol. 12(1), pages 19-38, April.
    8. Ruhm, Christopher J., 1995. "Economic conditions and alcohol problems," Journal of Health Economics, Elsevier, vol. 14(5), pages 583-603, December.
    9. 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.
    10. Ettner, Susan L., 1997. "Measuring the human cost of a weak economy: Does unemployment lead to alcohol abuse?," Social Science & Medicine, Elsevier, vol. 44(2), pages 251-260, January.
    11. 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.
    12. Cook, Philip J. & Moore, Michael J., 1993. "Drinking and schooling," Journal of Health Economics, Elsevier, vol. 12(4), pages 411-429, December.
    13. 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.
    14. Richard Frank & Paul Gertler, 1991. "An Assessment of Measurement Error Bias for Estimating the Effect of Mental Distress on Income," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 154-164.
    15. Vivian Hamilton & Barton H. Hamilton, 1997. "Alcohol and Earnings: Does Drinking Yield a Wage Premium," Canadian Journal of Economics, Canadian Economics Association, vol. 30(1), pages 135-151, February.
    16. Mullahy, John & Sindelar, Jody L, 1991. "Gender Differences in Labor Market Effects of Alcoholism," American Economic Review, American Economic Association, vol. 81(2), pages 161-165, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrew Healey & Martin Knapp & David Farrington, 2004. "Adult labour market implications of antisocial behaviour in childhood and adolescence: findings from a UK longitudinal study," Applied Economics, Taylor & Francis Journals, vol. 36(2), pages 93-105.
    2. Jakub Lonsky & Isabel Ruiz & Carlos Vargas-Silva, 2022. "Trade Networks, Heroin Markets, and the Labor Market Outcomes of Vietnam Veterans," Working Papers 202203, University of Liverpool, Department of Economics.
    3. Roebuck, M. Christopher & French, Michael T. & Dennis, Michael L., 2004. "Adolescent marijuana use and school attendance," Economics of Education Review, Elsevier, vol. 23(2), pages 133-141, April.
    4. Ziggy MacDonald, 2004. "What Price Drug Use? The Contribution of Economics to an Evidence‐Based Drugs Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 18(2), pages 113-152, April.
    5. Mohamed Abdallah Ali & Mazhar Mughal & Charles Kodjo Mawusi, 2021. "Does Khat Consumption Affect Work Performance ? A Micro-Perspective from Djibouti," Working papers of Transitions Energétiques et Environnementales (TREE) hal-03375659, HAL.
    6. Filip Palda, 2001. "Pain," Microeconomics 0111003, University Library of Munich, Germany.
    7. Matthew C. Harris & Lawrence M. Kessler & Matthew N. Murray & Beth Glenn, 2020. "Prescription Opioids and Labor Market Pains: The Effect of Schedule II Opioids on Labor Force Participation and Unemployment," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1319-1364.
    8. Lonsky, Jakub & Ruiz, Isabel & Vargas-Silva, Carlos, 2022. "Trade networks, heroin markets, and the labor market outcomes of Vietnam veterans," Labour Economics, Elsevier, vol. 78(C).
    9. Costa Storti, Cláudia & Grauwe, Paul & Sabadash, Anna & Montanari, Linda, 2011. "Unemployment and drug treatment," MPRA Paper 61799, University Library of Munich, Germany.
    10. Sabia, Joseph J. & Nguyen, Thanh Tam, 2016. "The Effect of Medical Marijuana Laws on Labor Market Outcomes," IZA Discussion Papers 9831, Institute of Labor Economics (IZA).
    11. Michael T. French & M. Christopher Roebuck & Pierre Kébreau Alexandre, 2001. "Illicit Drug Use, Employment, and Labor Force Participation," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 349-368, October.
    12. Pierre Kébreau Alexandre & Michael T. French, 2004. "Further Evidence on the Labor Market Effects of Addiction: Chronic Drug Use and Employment in Metropolitan Miami," Contemporary Economic Policy, Western Economic Association International, vol. 22(3), pages 382-393, July.
    13. Linton, Sabriya L. & Haley, Danielle F. & Hunter-Jones, Josalin & Ross, Zev & Cooper, Hannah L.F., 2017. "Social causation and neighborhood selection underlie associations of neighborhood factors with illicit drug-using social networks and illicit drug use among adults relocated from public housing," Social Science & Medicine, Elsevier, vol. 185(C), pages 81-90.
    14. Jeanne S. Ringel & Phyllis L. Ellickson & Rebecca L. Collins, 2006. "The Relationship Between High School Marijuana Use And Annual Earnings Among Young Adult Males," Contemporary Economic Policy, Western Economic Association International, vol. 24(1), pages 52-63, January.
    15. Zarkin, Gary A. & Mroz, Thomas A. & Bray, Jeremy W. & French, Michael T., 1998. "The relationship between drug use and labor supply for young men," Labour Economics, Elsevier, vol. 5(4), pages 385-409, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ziggy MacDonald & Michael Shields, "undated". "The Impact of Alcohol Use on Occupational Attainment and Wages," Discussion Papers in Public Sector Economics 98/8, Division of Economics, School of Business, University of Leicester.
    2. Ziggy MacDonald, 2004. "What Price Drug Use? The Contribution of Economics to an Evidence‐Based Drugs Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 18(2), pages 113-152, April.
    3. Ziggy MacDonald & Stephen Pudney, 2000. "The Wages of Sin? Illegal Drug Use and the Labour Market," LABOUR, CEIS, vol. 14(4), pages 657-673, December.
    4. Michael T. French & Ioana Popovici, 2011. "That instrument is lousy! In search of agreement when using instrumental variables estimation in substance use research," Health Economics, John Wiley & Sons, Ltd., vol. 20(2), pages 127-146, February.
    5. MacDonald, Ziggy & Pudney, Stephen, 2000. "Illicit drug use, unemployment, and occupational attainment," Journal of Health Economics, Elsevier, vol. 19(6), pages 1089-1115, November.
    6. Keng, Shao-Hsun, 1998. "The demand for health, alcohol abuse, and labor market outcomes: a longitudinal study," ISU General Staff Papers 1998010108000012934, Iowa State University, Department of Economics.
    7. Cook, Philip J. & Moore, Michael J., 2000. "Alcohol," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 30, pages 1629-1673, Elsevier.
    8. Philip J. Cook & Bethany Peters, 2005. "The Myth of the Drinker's Bonus," NBER Working Papers 11902, National Bureau of Economic Research, Inc.
    9. Michael T. French & M. Christopher Roebuck & Pierre Kébreau Alexandre, 2001. "Illicit Drug Use, Employment, and Labor Force Participation," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 349-368, October.
    10. M. Christopher Auld, 1998. "Wages, Alcohol Use, and Smoking: Simultaneous Estimates," HEW 9808001, University Library of Munich, Germany.
    11. Roebuck, M. Christopher & French, Michael T. & Dennis, Michael L., 2004. "Adolescent marijuana use and school attendance," Economics of Education Review, Elsevier, vol. 23(2), pages 133-141, April.
    12. Michael T. French & Gary A. Zarkin & Laura J. Dunlap, 1998. "Illicit Drug Use, Absenteeism, And Earnings At Six U.S. Worksites," Contemporary Economic Policy, Western Economic Association International, vol. 16(3), pages 334-346, July.
    13. Cook, Philip J. & Moore, Michael J., 1999. "Alcohol," Working Papers 156, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    14. Tekin, Erdal, 2002. "Employment, Wages, and Alcohol Consumption in Russia: Evidence from Panel Data," IZA Discussion Papers 432, Institute of Labor Economics (IZA).
    15. Williams, Jenny & van Ours, Jan C., 2017. "Early Cannabis Use and School to Work Transition of Young Men," IZA Discussion Papers 10488, Institute of Labor Economics (IZA).
    16. 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.
    17. Mullahy, John & Sindelar, Jody, 1996. "Employment, unemployment, and problem drinking," Journal of Health Economics, Elsevier, vol. 15(4), pages 409-434, August.
    18. R. R. Bryant & A. Jayawardhana & V. A. Samaranayake & A. Wilhite, "undated". "The impact of alcohol and drug use on employment: A labor market study using the National Longitudinal Survey of Youth," Institute for Research on Poverty Discussion Papers 1092-96, University of Wisconsin Institute for Research on Poverty.
    19. 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.
    20. Erdal Tekin, 2004. "Employment, Wages, and Alcohol Consumption in Russia," Southern Economic Journal, John Wiley & Sons, vol. 71(2), pages 397-417, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:7:y:1998:i:3:p:229-245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.