The effect of medical marijuana laws on the health and labor supply of older adults: Evidence from the Health and Retirement Study

Lauren Nicholas and Johanna Maclean

No 22688, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Older adults have the highest rates of many health conditions for which medical marijuana may be effective in moderating symptoms and are at elevated risk of reducing labor supply due to poor health. Surprisingly little is known about how this group responds to medical marijuana laws. We provide the first estimates of the effects of state medical marijuana laws on the health and labor supply of adults age 51 and older, focusing on those with medical conditions that may respond to medical marijuana. We use longitudinal data from the Health and Retirement Study to study these questions using differences-in-differences regression models. Three principle findings emerge from our analysis. First, we document that medical marijuana law passage leads to reductions in chronic pain and improvements in self-assessed health among older adults. Second, we show that passage of a state medical marijuana law leads to increases in older adult labor supply, with effects concentrated on the intensive margin. Third, effects are largest among older adults with a health condition that would qualify for legal medical marijuana use under current state laws. Findings highlight the role of health policy in supporting work among older adults.

JEL-codes: I10 I18 J20 (search for similar items in EconPapers)
Date: 2016-09
New Economics Papers: this item is included in nep-age, nep-hea and nep-lma
Note: EH
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Citations: View citations in EconPapers (6)

Published as Lauren Hersch Nicholas & Johanna Catherine Maclean, 2019. "The Effect of Medical Marijuana Laws on the Health and Labor Supply of Older Adults: Evidence from the Health and Retirement Study," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(2), pages 455-480, March.

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