IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp16446.html
   My bibliography  Save this paper

Persistent Marijuana Use: Evidence from the NLSY

Author

Listed:
  • Hansen, Jörgen

    (Concordia University)

  • Davalloo, Golnaz

    (Concordia University)

Abstract

We analyze persistence in marijuana consumption utilizing data from the 1997 cohort of the National Longitudinal Survey of Youth (NLSY97). We allow for three sources of persistence: pure state dependence, time invariant unobserved heterogeneity and persistence in idiosyncratic, time-varying shocks. We also consider intensity of consumption based on days of use per month and estimate a dynamic ordered Probit model using simulated Maximum Likelihood. We consider a Polya model that generalizes the more commonly used Markov models. The results show that there is a causal eect of previous use. However, ignoring unobserved heterogeneity and serially correlated shocks signicantly exaggerates the state dependence.

Suggested Citation

  • Hansen, Jörgen & Davalloo, Golnaz, 2023. "Persistent Marijuana Use: Evidence from the NLSY," IZA Discussion Papers 16446, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16446
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp16446.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Olivier Marie & Ulf Zölitz, 2017. "“High” Achievers? Cannabis Access and Academic Performance," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(3), pages 1210-1237.
    2. Christian Belzil & Jörgen Hansen, 2020. "The evolution of the US family income–schooling relationship and educational selectivity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(7), pages 841-859, November.
    3. Bo E. Honoré & Chris Muris & Martin Weidner, 2021. "Dynamic Ordered Panel Logit Models," Working Papers 2021-14, Princeton University. Economics Department..
    4. Dean R. Hyslop, 1999. "State Dependence, Serial Correlation and Heterogeneity in Intertemporal Labor Force Participation of Married Women," Econometrica, Econometric Society, vol. 67(6), pages 1255-1294, November.
    5. van Ours, Jan C. & Williams, Jenny, 2009. "Why parents worry: Initiation into cannabis use by youth and their educational attainment," Journal of Health Economics, Elsevier, vol. 28(1), pages 132-142, January.
    6. Jorgen Hansen & Magnus Lofstrom, 2009. "The dynamics of immigrant welfare and labor market behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 941-970, October.
    7. Daniel F. McCaffrey & Rosalie Liccardo Pacula & Bing Han & Phyllis Ellickson, 2010. "Marijuana use and high school dropout: the influence of unobservables," Health Economics, John Wiley & Sons, Ltd., vol. 19(11), pages 1281-1299, November.
    8. Lee, Lung-Fei, 1997. "Simulated maximum likelihood estimation of dynamic discrete choice statistical models some Monte Carlo results," Journal of Econometrics, Elsevier, vol. 82(1), pages 1-35.
    9. Yang Wang, 2014. "Dynamic Implications of Subjective Expectations: Evidence from Adult Smokers," American Economic Journal: Applied Economics, American Economic Association, vol. 6(1), pages 1-37, January.
    10. Deza, Monica, 2015. "Is there a stepping stone effect in drug use? Separating state dependence from unobserved heterogeneity within and between illicit drugs," Journal of Econometrics, Elsevier, vol. 184(1), pages 193-207.
    11. Schmidt, L. & Weisner, C. & Wiley, J., 1998. "Substance abuse and the course of welfare dependency," American Journal of Public Health, American Public Health Association, vol. 88(11), pages 1616-1622.
    12. Tetsuji Yamada & Michael Kendix & Tadashi Yamada, 1996. "The impact of alcohol consumption and marijuana use on high school graduation," Health Economics, John Wiley & Sons, Ltd., vol. 5(1), pages 77-92, January.
    13. Mezza, Alvaro & Buchinsky, Moshe, 2021. "Illegal drugs, education, and labor market outcomes," Journal of Econometrics, Elsevier, vol. 223(2), pages 454-484.
    Full references (including those not matched with items on IDEAS)

    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. Chu, Yu-Wei Luke & Gershenson, Seth, 2018. "High times: The effect of medical marijuana laws on student time use," Economics of Education Review, Elsevier, vol. 66(C), pages 142-153.
    2. Jan C. Ours & Jenny Williams, 2015. "Cannabis Use And Its Effects On Health, Education And Labor Market Success," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 993-1010, December.
    3. Islam, Nizamul, 2007. "A Dynamic Tobit Model of Female Labor Supply," Working Papers in Economics 259, University of Gothenburg, Department of Economics.
    4. Deborah A. Cobb-Clark & Sonja C. Kassenboehmer & Trinh Le & Duncan McVicar & Rong Zhang, 2015. "‘High’-School: The Relationship between Early Marijuana Use and Educational Outcomes," The Economic Record, The Economic Society of Australia, vol. 91(293), pages 247-266, June.
    5. Pudney, Stephen & Bryan, Mark & DelBono, Emilia, 2013. "Licensing and regulation of the cannabis market in England and Wales: Towards a cost-benefit analysis," MPRA Paper 50365, University Library of Munich, Germany.
    6. Hansen, Jörgen & Lofstrom, Magnus & Zhang, Xuelin, 2006. "State Dependence in Canadian Welfare Participation," IZA Discussion Papers 2266, Institute of Labor Economics (IZA).
    7. 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.
    8. Deza, Monica, 2015. "Is there a stepping stone effect in drug use? Separating state dependence from unobserved heterogeneity within and between illicit drugs," Journal of Econometrics, Elsevier, vol. 184(1), pages 193-207.
    9. Okamura, Kazuaki & Islam, Nizamul, 2021. "Multinomial employment dynamics with state dependence and heterogeneity: Evidence from Japan," Economic Modelling, Elsevier, vol. 101(C).
    10. Chu, Luke Yu-Wei & Gershenson, Seth, 2016. "High times: The effect of medical marijuana laws on student time use," Working Paper Series 19417, Victoria University of Wellington, School of Economics and Finance.
    11. Akay, Alpaslan, 2009. "Dynamics of the Employment Assimilation of First-Generation Immigrant Men in Sweden: Comparing Dynamic and Static Assimilation Models with Longitudinal Data," IZA Discussion Papers 4655, Institute of Labor Economics (IZA).
    12. Moura, Guilherme V. & Richard, Jean-François & Liesenfeld, Roman, 2007. "Dynamic Panel Probit Models for Current Account Reversals and their Efficient Estimation," Economics Working Papers 2007-11, Christian-Albrechts-University of Kiel, Department of Economics.
    13. Rob Alessie & Stefan Hochguertel & Arthur van Soest, 2004. "Ownership of Stocks and Mutual Funds: A Panel Data Analysis," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 783-796, August.
    14. van Ours, Jan C. & Williams, Jenny, 2009. "Why parents worry: Initiation into cannabis use by youth and their educational attainment," Journal of Health Economics, Elsevier, vol. 28(1), pages 132-142, January.
    15. Islam, Nizamul & Shimeles, Abebe, 2007. "Poverty dynamics in Ethiopia: state dependence," Working Papers in Economics 260, University of Gothenburg, Department of Economics.
    16. Islam, Nizamul, 2005. "Dynamic labour force participation of married women in Sweden," Working Papers in Economics 184, University of Gothenburg, Department of Economics, revised 10 Jul 2007.
    17. Roman Liesenfeld & Guilherme Valle Moura & Jean‐François Richard, 2010. "Determinants and Dynamics of Current Account Reversals: An Empirical Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(4), pages 486-517, August.
    18. Lionel Perini & Joachim Marti, 2013. "The impact of cannabis use on short-term educational outcomes," IRENE Working Papers 13-03, IRENE Institute of Economic Research.
    19. Marian Shanahan & Alison Ritter, 2014. "Cost Benefit Analysis of Two Policy Options for Cannabis: Status Quo and Legalisation," PLOS ONE, Public Library of Science, vol. 9(4), pages 1-12, April.
    20. Nisar Ahmad, 2014. "State Dependence in Unemployment," International Journal of Economics and Financial Issues, Econjournals, vol. 4(1), pages 93-106.

    More about this item

    Keywords

    marijuana; persistence; state dependence; Polya model; unobserved heterogeneity; dynamic ordered probit; simulation; NLSY;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iza:izadps:dp16446. 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    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.