Analysis: Adult-Use Cannabis Leads to Economic Improvements, More Jobs

Opponents of recreational cannabis legalization believe that increased cannabis use can reduce motivation, impede cognitive functioning, harm health, and ultimately affect the financial well-being of adults. claims to have sex. however, analysis A study released by the National Bureau of Economic Research found the opposite to be true. Legalizing cannabis for adult use is actually associated with an improved economy and increased job opportunities.

Researchers from San Diego State University and Bentley University conducted the study, which they say is the first to examine the impact of recreational cannabis legislation on employment, wages and labor market outcomes for working-age individuals. They used data from the 2002-2020 Current Population Survey Merged Outgoing Rotation Groups with various differencing approaches including TWFE and Callaway and Sant’Anna estimators.

Ultimately, the researchers concluded that “RML [recreational marijuana laws] It negatively affects labor market outcomes among most working-age individuals. ”

Rather, we find evidence of “small increases” in employment and wages, especially among people over 30 (often short-term gains), young racial/ethnic minorities, and those working in the agricultural sector. rice field.

“These results are consistent with the beginning of a new legal industry for marijuana, an alternative from harder substances such as opioids (especially for older adults),” the researchers said.

The foreword to the working paper opens with two contrasting quotes from Elon Musk and Seth Logan. Musk’s quote, “I don’t smoke weed regularly… I don’t think it’s very good for productivity,” and Logan’s, “I do smoke. I have a lot of weed when I write.”

Although cannabis and personal productivity were not the focus of this paper, many recent studies have explored the issue, with conflicting results. One of his 2022 studies concluded that cannabis use had no effect on motivation. 2016 survey suggested improvements in performance and cognitive function in cannabis users. others We concluded that cannabis use can actually lead to decreased motivation.

Instead, the analysis explored broader economic trends following the legalization of recreational cannabis. Ultimately, the authors said cannabis reform would introduce new industries, which would ultimately create jobs and opportunities for the working class.

In addition to busy job opportunities, access to legal cannabis can keep people away from other substances such as opioids and heavy alcohol use that can negatively impact productivity, researchers say. increase. They also note that if cannabis is effective in improving physical or psychological health symptoms, these improvements could also help create “positive spillovers into the labor market.” increase.

Legal cannabis use also reduces the criminalization surrounding cannabis possession, and is better again, especially among young black and Hispanic men who “have disproportionately reduced labor market opportunities due to their criminal record.” Researchers say labor market outcomes will be possible.

Being a relatively new market, researchers said studies were limited based on the limited time period available for analysis.

“Long-term labor market impacts are likely to be different as we learn more about the impact of RML on cognitive development and human capital acquisition for people under 21. productivity, wages, and/or employment,” they concluded. “Furthermore, the labor market impact of reduced criminal records may also take time to become apparent.”

The researchers also said the first COVID-19 period was a “dramatic increase” in cannabis sales and the period that followed was “one of the dramatic declines” in sales, citing the new legal industry as the time has come. He said it was difficult to see how it would evolve over time.

“Nevertheless, our findings answer some important early questions about the economic impact of recreational marijuana legalization,” the authors said.

Previous research Verified Association between recreational cannabis laws and rising levels of employment among older adults. data Data compiled last year by Leafly and Whitley Economics also show that the cannabis industry will add more than 100,000 new jobs in 2021 and employ more than 428,000 full-time workers at release.