The Effects of Layoffs on Opioid Use and Abuse

Marius Morthorst, David Price and Peter Thingholm

Working Papers from University of Toronto, Department of Economics

Abstract: The opioid epidemic is often associated with economic hardship. We identify their causal relationship by estimating the effect of mass layoffs on opioid use and abuse in Denmark. This paper has three main contributions. First, we find the clearest evidence that economic conditions affect opioid use: individuals increase consumption by 65%, with evidence of abuse. Second, we disentangle indirect effects: spouses consume 40% more opioids. Third, we connect opioid demand (as we study) to the more prominent literature on supply, finding evidence that effects of layoffs are stronger in areas that have a large underlying supply of opioids.

Keywords: layoffs; opioids; substance abuse (search for similar items in EconPapers)
JEL-codes: I12 I14 J63 (search for similar items in EconPapers)
Pages: Unknown pages
Date: 2025-01-22
New Economics Papers: this item is included in nep-hea and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:tor:tecipa:tecipa-794

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