Healed or Hindered? A Quantitative Analysis of Labor Force Participation Rates and Medical Marijuana Laws in the United States

Abstract

In light of modern trends in the enactment of medical marijuana laws (MMLs) and a simultaneous and substantial decline in labor force participation rates (LFPR) of certain age groups, this study aims to provide insight through a three-pronged approach. First, I offer a review of the literature and theory surrounding this subject specifically, as well as studies on analogous topics that provide relevant information. Secondly, I attempt to explain the primary mechanism for a supposed causal link between MMLs and LFPR through a quantitative analysis of marijuana usage data and MML enactment events. The results show a significant negative relationship, but there are serious concerns as to the model’s theoretical integrity. Thirdly, a quantitative analysis of state-level LFPR data and MML enactment effective dates is explored. These results do not show any significant relationship between LFPR and MMLs when clustering standard errors by state is employed. However, they do show a minor positive relationship if such clustering is omitted.