The Economics of Preemployment Drug Testing

Jason Zimmerman
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Jason Zimmerman: South Dakota State University

Journal of Economic Insight, 2002, vol. 28, issue 2, 47-65

Abstract: A labor market matching model shows that preemployment drug testing leads to a net improvement in social welfare, but the overall level of drug testing will exceed the social optimum. These results hold for wide ranges of parameter values. Drug testing results in fewer and shorter episodes of unemployment for drug-free workers while producing the opposite effect for drug users. Increases in the overall prevalence of drug use can lower the popularity of drug testing.

JEL-codes: D21 J00 (search for similar items in EconPapers)
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:mve:journl:v:28:y:2002:i:2:p:47-65

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