NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Effect of Illicit Drug Use on the Labor Supply of Young Adults

Robert Kaestner

NBER Working Paper No. 4187*
Issued in October 1992
NBER Program(s):   HE

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This paper analyzes the effects of illicit drug use on the labor supply of a sample of young adults using data from the National Longitudinal Survey of Youth. The paper investigates whether the frequency and timing of marijuana and cocaine use are systematically related to labor supply. and presents both cross sectional and longitudinal estimates. The cross sectional results are consistent with those of previous researchers. and suggest that illicit drug use has large, negative effects on labor supply. The longitudinal results. however, suggest that illicit drug use does not have a significant adverse impact on labor supply.

*Published: s",EI,1996,v34(4,Oct).; "New Estimates of the Effect of Marijuana and Cocaine Use on Wages",ILRR,1994,v47(3),454-470.; "The Effect of Illicit Drug Useon the Wages of Young Adults",JLE,1991,v9(4),381-412.; JHR, 1994, v29(1), 126-155.; ILRR, 1996, v50(1, Oct), 122-142. "Wages, Workers' Compensation Benefits, and Drug Use: Indirect Evidence ofthe Effect of Drugs on Workplace Accidents", AER (1995); "The Effect of Drug Use on Workplace Accidents",LABECON,1998,v5(3,Sept),267-294.; "The Effect of Maternal Drug Use on Birth Weight:Measurement Error in Binary Variable

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