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The Effects of Layoffs on Opioid Use and Abuse

Author

Listed:
  • Marius Opstrup Morthorst
  • David J. Price
  • Peter Rønø Thingholm

Abstract

The opioid epidemic is often associated with economic hardship. We identify their causal relationship by estimating the effect of mass layoffs on opioid use and abuse in Denmark. This paper has three main contributions. First, we find the clearest evidence that economic conditions affect opioid use: individuals increase consumption by 65%, with evidence of abuse. Second, we disentangle indirect effects: spouses consume 40% more opioids. Third, we connect opioid demand (as we study) to the more prominent literature on supply, finding evidence that effects of layoffs are stronger in areas that have a large underlying supply of opioids.

Suggested Citation

  • Marius Opstrup Morthorst & David J. Price & Peter Rønø Thingholm, 2025. "The Effects of Layoffs on Opioid Use and Abuse," Working Papers tecipa-794, University of Toronto, Department of Economics.
    • Handle: RePEc:tor:tecipa:tecipa-794
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    More about this item

    Keywords

    layoffs; opioids; substance abuse;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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