Drug Studies Rice et al. Use of cocaine increases job mobility, gaps, and unemployment. No effect of recent drug use on current wages controlling for previous years' wages. Overall positive effect of marijuana use on wages. No significant effect of cocaine use on wages.
Drug users have higher wages but lower returns to human capital characteristics than nonusers.
21 to 30 Marijuana and cocaine use have negative impact on labor supply in a cross-sectional analysis, particularly among males. Longitudinal analysis indicates no effect of illicit drug use on labor supply for males or females. Although moderate drug use is associated with higher income among young males, this disappears among older males.