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Does Marijuana Legalization Affect Work Capacity? Evidence from Workers’ Compensation Benefits

Author

Listed:
  • Rahi Abouk
  • Keshar M. Ghimire
  • Johanna Catherine Maclean
  • David Powell

Abstract

We study the effect of state recreational marijuana laws (RMLs) on workers’ compensation (WC) benefit receipt among adults 40-62 years. We find that WC receipt declines in response to RML adoption both in terms of the propensity to receive benefits and benefit amount. We estimate complementary declines in non-traumatic workplace injury rates and the incidence of work-limiting disabilities. We offer evidence that the primary driver of these reductions is an improvement in work capacity, likely due to access to an additional form of pain management therapy.

Suggested Citation

  • Rahi Abouk & Keshar M. Ghimire & Johanna Catherine Maclean & David Powell, 2021. "Does Marijuana Legalization Affect Work Capacity? Evidence from Workers’ Compensation Benefits," NBER Working Papers 28471, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:28471
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    Cited by:

    1. Jason Brown & Elior Cohen & Alison Felix, 2023. "Economic Benefits and Social Costs of Legalizing Recreational Marijuana," Research Working Paper RWP 23-10, Federal Reserve Bank of Kansas City.
    2. 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.
    3. Anderson, D. Mark & Rees, Daniel I., 2021. "The Public Health Effects of Legalizing Marijuana," IZA Discussion Papers 14292, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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