Escuela de Finanzas, Economía y Gobierno

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Does illicit drug use affect labor market outcomes? Evidence from a developing country
(Universidad EAFIT, 2017) Calle Echeverri, Carolina; Suárez Obando., Gabriel Jaime; Posso Suárez, Christian Manuel
Illicit drug use is often related to several problems for individuals who participate on the labor market due to decreasing productivity, absenteeism, increasing crime and health consequences -- This study analyzes the relationship between substance use and labor market outcomes using econometric methods to address the potential endogeneity problem -- We use a large data set for Medellin, Colombia, to find the causal effect of drug use on labor supply and labor force participation -- According to most existing research, we found that drug use affects negatively the probability of being employed and the probability of participate in the labor force