Working Paper: NBER ID: w28471
Authors: Rahi Abouk; Keshar M. Ghimire; Johanna Catherine Maclean; David Powell
Abstract: We study the effect of state recreational marijuana laws (RMLs) on workers’ compensation (WC) benefit receipt among adults 40-62 years. We find that WC receipt declines in response to RML adoption both in terms of the propensity to receive benefits and benefit amount. We estimate complementary declines in non-traumatic workplace injury rates and the incidence of work-limiting disabilities. We offer evidence that the primary driver of these reductions is an improvement in work capacity, likely due to access to an additional form of pain management therapy.
Keywords: marijuana legalization; workers' compensation; work capacity; pain management
JEL Codes: H12; I12; I18; J32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Adoption of RMLs (R50) | Decline in WC benefit receipt (I38) |
| Adoption of RMLs (R50) | Improvement in work capacity (J24) |
| Adoption of RMLs (R50) | Increase in access to alternative pain management therapies (I11) |
| Decline in WC benefit receipt (I38) | Improvement in work capacity (J24) |
| Adoption of RMLs (R50) | Decrease in WC income (J39) |
| Adoption of RMLs (R50) | Reduced nonfatal workplace injury rates (J28) |
| Adoption of RMLs (R50) | Reduced self-reported work-limiting disabilities (J14) |
| Adoption of RMLs (R50) | Increased labor supply (J20) |