Early Cannabis Use and the School to Work Transition of Young Men

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 07.05.2014, 12:15 - 13:30

   

Presentation by 

Jenny Williams (University of Melbourne)
   

Abstract:

This paper investigates the effect of cannabis use while in school on young menís transition from school to work. The two dimensions of this transitions we focus on is the duration of time between leaving school and finding employment for the first time, and the wage rate received when starting the first job. Our empirical approach accounts for selectivity into cannabis use as well as common confounders that jointly effect finding a job and the initial wage rate. We find that after accounting for selectivity, cannabis use while in school leads young men to accept jobs more quickly but at a slighter lower hourly wage rate. These effects are driven by those who used cannabis for at least three years before leaving school. We find no effect of cannabis use on either the rate at which jobs are found or the wage rate received for those who used cannabis for one or two years before leaving school.

   
   
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