NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Effect of Illicit Drug Use on the Wages of Young Adults

Robert Kaestner

NBER Working Paper No. 3535
Issued in December 1990
NBER Program(s):   HE

This paper examines the effects of cocaine and marijuana use on the wages of a sample of young adults drawn from the NLS Youth Cohort. The endogeneity of drug use in a wage equation is considered and a 2SLS procedure is implemented. The rather surprising results suggest that for this sample, increased use of marijuana or cocaine is associated with higher wages. The positive relationship between drug use and the wage does not diminish with age, but remains substantially positive. We also investigate whether systematic differences in the return to measures of human capital investments can explain the observed positive relationship between drug use and wages. The results from this analysis do not support such a hypothesis.

download in pdf format
   (467 K)

email paper

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

This paper is available as PDF (467 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published:

  • Journal of Labor Economics, vol. 9, no. 4, (October 1991), p. 381-412. ,
  • "New Estimates of the Effect of Marijuana and Cocaine Use on Wages", Industrial and Labor Relations Review, April 1994, V47(3), 454-470

Users who downloaded this paper also downloaded these:
Kaestner w4187 The Effect of Illicit Drug Use on the Labor Supply of Young Adults
Kaestner Does Drug Use Cause Poverty?
Kaestner w6406 Does Drug Use Cause Poverty?
Pacula, , and Ringel w9963 Does Marijuana Use Impair Human Capital Formation?
McCaffrey, Pacula, Han, and Ellickson w14102 Marijuana Use and High School Dropout: The Influence of Unobservables
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us