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Research ArticleArticles

The Effects of the Opioid Crisis on Employment

Evidence from Labor Market Flows

Anita Mukherjee, Daniel W. Sacks and Hoyoung Yoo
Published online before print April 06, 2023, 1121-12018R2; DOI: https://doi.org/10.3368/jhr.1121-12018R2
Anita Mukherjee
Anita Mukherjee is an assistant professor of Risk and Insurance at the Wisconsin School of Business, University of Wisconsin-Madison ().
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Daniel W. Sacks
Daniel W. Sacks is an associate professor of Risk and Insurance at the Wisconsin School of Business, University of Wisconsin-Madison.
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Hoyoung Yoo
Hoyoung Yoo is a graduate student of economics at the University of Wisconsin-Madison.
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Abstract

We show that the opioid crisis slows transitions to employment from unemployment and non-participation. We identify the effect of the opioid crisis from cross-state variation in triplicate prescribing regulations, which produced long-lasting reductions in opioid use by reducing the initial distribution of the blockbuster opioid OxyContin. Difference-in-differences estimates show that triplicate regulations induce unemployed and non-participating workers in triplicate states to return to employment about 10 percent faster than workers in non-triplicate states. These estimates imply a 1.1 percentage point higher level of employment in steady state.

JEL Classification:
  • J21
  • E24
  • K32
  • E61
  • E71

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Journal of Human Resources: 58 (5)
Journal of Human Resources
Vol. 58, Issue 5
1 Sep 2023
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The Effects of the Opioid Crisis on Employment
Anita Mukherjee, Daniel W. Sacks, Hoyoung Yoo
Journal of Human Resources Apr 2023, 1121-12018R2; DOI: 10.3368/jhr.1121-12018R2

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The Effects of the Opioid Crisis on Employment
Anita Mukherjee, Daniel W. Sacks, Hoyoung Yoo
Journal of Human Resources Apr 2023, 1121-12018R2; DOI: 10.3368/jhr.1121-12018R2
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Keywords

  • J21
  • E24
  • K32
  • E61
  • E71
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