From high school to higher education: Is recreational marijuana a consumption amenity for US college students?

Ahmed El Fatmaoui

Economic Inquiry, 2024, vol. 62, issue 3, 1024-1045

Abstract: This paper examines how recreational marijuana legalization (RML) affects first‐time college enrollment in the US using a unique college‐level dataset and various estimation methods such as difference‐in‐differences and event study. I find that RML increases enrollments by approximately up to 9%, without compromising degree completion or graduation rate, and it boosts college competitiveness by offering a positive amenity, as evidenced by the rise in out‐of‐state enrollments relative to neighboring states. In addition, I find no evidence that RML affects college prices, quality, or in‐state enrollment. This effect is stronger for non‐selective public colleges in early‐adopting RML states.

Date: 2024
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