Research Publication Title

Does the Decriminalization of Marijuana Affect Labor Productivity?

Presenter Information

Carter OldknowFollow

Major

Economics

Faculty Mentor

Dr. Brooke Conaway

Keywords

Marijuana, Decriminalization, Labor, Productivity

Abstract

The social stigma around marijuana in the United States has rapidly broken down as the public approval rates currently stand at 61%. Many individual states have reacted to the social change by reducing or eliminating the penalties for marijuana use or possession. Previous research has shown that the liberalized legal status of marijuana leads to negative labor market outcomes like decreases in employment and wages. In my research, I investigate whether or not the decriminalization of marijuana reflects previous literature by researching the impacts on labor productivity. I construct a panel of the 50 U.S states using data from 2005-2017 and then implement a difference-in-difference model to observe labor productivity changes in the mining and construction industries. The results produce evidence that exhibit marijuana decriminalization having a negative impact on labor productivity, but the results are not consistent across both industries and are spread over several years.

This document is currently not available here.

Share

COinS
 

Does the Decriminalization of Marijuana Affect Labor Productivity?

The social stigma around marijuana in the United States has rapidly broken down as the public approval rates currently stand at 61%. Many individual states have reacted to the social change by reducing or eliminating the penalties for marijuana use or possession. Previous research has shown that the liberalized legal status of marijuana leads to negative labor market outcomes like decreases in employment and wages. In my research, I investigate whether or not the decriminalization of marijuana reflects previous literature by researching the impacts on labor productivity. I construct a panel of the 50 U.S states using data from 2005-2017 and then implement a difference-in-difference model to observe labor productivity changes in the mining and construction industries. The results produce evidence that exhibit marijuana decriminalization having a negative impact on labor productivity, but the results are not consistent across both industries and are spread over several years.