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• W1551155538 abstract "In the last 30 years there has been a significant decrease in the growth rate of labor productivity in the United States, and as a result of this experience the country is paying greater attention to workplace issues. Coinciding with the decline in productivity has been an increase in illicit drug use by the employed population. Not surprisingly, the two facts have been combined, and it has now become the conventional wisdom that drug use is a significant cause of declining productivity. Estimates of the dollar value of the productivity loss due to illicit drug use range from 8.6 to 33 billion dollars per year. In response to these perceived losses, the government and the private sector have undertaken an extensive campaign to reduce drug use in the workplace. Hundreds of companies in the United States have developed extensive alcoholand drug-abuse programs alternately aimed at prevention, detection, and treatment of employees who use illicit drugs. As of 1990, 46 percent of all firms with 250 or more employees had a drug testing program, and 79 percent of these firms had a formal employee assistance plan (Howard V. Hayghe, 1991). The federal government has also been quite active in its effort to control illicit drug use in the workplace. The Drug Free Workplace Act of 1988 requires federal government contractors to maintain drug-free workplaces, and Executive Order 12564 requires all federal agencies to establish drug-freeworkplace policies. The widespread acceptance of the causal link between drug use and declining productivity is surprising in light of the fact that most of the evidence on the issue is anecdotal in nature. On the other hand, the limited amount of scrutiny of the problem is understandable given the documented adverse physical and psychological consequences of drug use. The purpose of this paper is to examine the relationship between drug use and workplace accidents. Accidents on the job are often cited as an important consequence of drug use and a significant factor related to declining productivity. This paper will examine the issue in a novel way. All previous studies in this area have examined whether individuals who use drugs are more likely than their nonusing counterparts to experience an accident on the job. An alternative approach, however, is to focus on the individual's consumption choices. Assuming that drug use affects the probability of having an accident, it can be shown that wages and workers' compensation benefits will have a significant impact on drug consumption levels. The logic underlying this hypothesis is relatively simple: an accident results in a loss of income the size of which is determined by the difference between wages and workers' compensation benefits. Thus, an examination of the effect of wages and workers' compensation benefits on drug use provides indirect evidence that drug use affects job safety. The results of this analysis suggest that drug use is not a significant factor related to workplace accidents. Variation in wages and workers' compensation benefits had little effect on the probability that an individual would be a drug user. * Kaestner: Baruch College, Rider University, and National Bureau of Economic Research, 269 Mercer St., New York, NY 10003-6687; Grossman: Graduate Center, City University of New York, and NBER." @default.
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• W1551155538 date "1995-05-01" @default.
• W1551155538 modified "2023-10-16" @default.
• W1551155538 title "Wages, workers' compensation benefits, and drug use: indirect evidence of the effect of drugs on workplace accidents." @default.
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