RT Journal Article
SR Electronic
T1 Prescription Opioids and Labor Market Pains: The Effect of Schedule II Opioids on Labor Force Participation and Unemployment
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 0517-8782R1
DO 10.3368/jhr.55.4.0517-8782R1
A1 Matthew C. Harris
A1 Lawrence M. Kessler
A1 Matthew N. Murray
A1 Beth Glenn
YR 2019
UL http://jhr.uwpress.org/content/early/2019/01/09/jhr.55.4.0517-8782R1.abstract
AB We examine the effect of prescription opioids on county labor market outcomes, using data from the Prescription Drug Monitoring Programs of ten U.S. states and labor data from the Bureau of Labor Statistics. We achieve causal identification by exploiting plausibly exogenous variation in the concentration of high-volume prescribers as instruments (using Medicare Part D prescriber data). We find strong adverse effects on labor force participation rates, employment-to-population ratios, and unemployment rates. Notably, a 10 percent increase in prescriptions causes a 0.56 percentage point reduction in labor force participation, similar to the drop attributed to the 1984 liberalization of Disability Insurance.