Illicit drug use and labor market outcomes: A review of economic theory and its empirical implications

Journal/Book: J Drug Issues. 1998; 28: Florida State Univ, School, Criminology Criminal Justice, PO Box 66696, Tallahassee, FL 32313-6696. J Drug Issues Inc. 663-680.

Abstract: In this paper, I outline the economic theory pertinent to the analysis of the effect of drug use on labor market outcomes. I argue that the complex behavioral link that underlie the relationship between drug use and labor market outcomes make it necessary to explicitly model the process that determines both of these outcomes. Only then can effective empirical strategies be developed that will yield credible estimates of the causal effect of drug use on labor market outcomes. Economic theory is well suited to this task since at its core it is a behavioral model of individual choice. I also discuss some methodological strategies that can be used to address the empirical problems associated with estimating such a structural model.

Note: Article Kaestner R, Natl Bur Econ Res, 50 E 42ND St, 17TH Floor, New York,NY 10017 USA

Keyword(s): MARIJUANA USE; COCAINE USE; IMPACT; WAGES; MEN

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