Recreational Marijuana Laws and Workplace Absence

Area of Science:

• Public Health
• Labor Economics
• Cannabis Research

Background:

• Numerous states have enacted recreational marijuana laws (RMLs).
• The effects of RMLs on labor market dynamics, particularly workplace absence, are not well understood.
• Existing research often overlooks non-employment labor market behaviors.

Purpose of the Study:

• To provide causal evidence on the relationship between RMLs and workplace absence.
• To investigate how the rollout of legal recreational marijuana sales influences labor market outcomes.
• To explore potential mediating factors, such as mental health, in this relationship.

Main Methods:

• Utilized a generalized difference-in-differences (DiD) framework.
• Exploited the staggered implementation of RMLs across states.
• Analyzed data on adult marijuana use, workplace absence, and self-reported health outcomes.

Main Results:

• The introduction of legal recreational marijuana sales was associated with a 50% increase in prior-month adult marijuana use.
• Access to retail marijuana markets led to a 14% increase in prior-week workplace absence.
• Increases in self-reported mental health issues were observed following the opening of recreational dispensaries, potentially explaining some of the absence increase.

Conclusions:

• Marijuana legalization, specifically through RMLs, is causally linked to increased workplace absence.
• Labor market impacts of marijuana legalization extend beyond employment status to include absenteeism.
• The findings highlight the need to consider broader labor market effects and potential health implications of cannabis policy.