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Illegal Drug Use and Employment

Jeff DeSimone
Journal of Labor Economics
Vol. 20, No. 4 (October 2002), pp. 952-977
DOI: 10.1086/342893
Stable URL: http://www.jstor.org/stable/10.1086/342893
Page Count: 26
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Illegal Drug Use and Employment
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Abstract

This article investigates the relationship between employment and the use of marijuana and cocaine for males in National Longitudinal Survey of Youth data from 1984 and 1988. Previous studies yielding mixed evidence may have inadequately accounted for the simultaneity between drug consumption and employment. I implement an instrumental variable procedure that identifies drug use with variables that are empirically unrelated to employment, including the regional cocaine price and a state marijuana decriminalization indicator. Results indicate that the use of each drug substantially reduces the likelihood of employment. Exogeneity tests reveal that standard probit estimates are severely biased toward zero.

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