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Research ArticleArticles

The Impact of Opioids on the Labor Market

Evidence from Drug Rescheduling

View ORCID ProfileDavid Beheshti
Journal of Human Resources, November 2023, 58 (6) 2001-2041; DOI: https://doi.org/10.3368/jhr.0320-10762R1
David Beheshti
David Beheshti is an assistant professor of economics at the University of Texas at San Antonio.
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ABSTRACT

The areas most affected by the opioid crisis have witnessed deteriorating economic conditions, although it is unclear if this represents a causal relationship. I provide new evidence on this question by leveraging a natural experiment that sharply decreased the supply of hydrocodone, the most commonly prescribed opioid in the United States, relative to other opioids. Areas with larger reductions in hydrocodone prescribing experienced relative improvements in labor force participation and employment. However, these areas also witnessed higher growth in drug-related arrests. I find some evidence of reductions in illicit opioid deaths, which are offset by increases in other drug-related deaths.

JEL Classification:
  • J21
  • I10
  • J20
  • K42
  • Received March 2020.
  • Accepted July 2021.
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Journal of Human Resources: 58 (6)
Journal of Human Resources
Vol. 58, Issue 6
1 Nov 2023
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The Impact of Opioids on the Labor Market
David Beheshti
Journal of Human Resources Nov 2023, 58 (6) 2001-2041; DOI: 10.3368/jhr.0320-10762R1

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The Impact of Opioids on the Labor Market
David Beheshti
Journal of Human Resources Nov 2023, 58 (6) 2001-2041; DOI: 10.3368/jhr.0320-10762R1
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Keywords

  • J21
  • I10
  • J20
  • K42
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