Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/155757
Authors: 
Williams, Jenny
van Ours, Jan C.
Year of Publication: 
2017
Series/Report no.: 
GLO Discussion Paper 31
Abstract: 
We study the impact of early cannabis use on the school to work transition of young men. Our empirical approach accounts for common unobserved confounders that jointly affect se- lection into cannabis use and the transition from school to work using a multivariate mixed proportional hazard framework in which unobserved heterogeneities are drawn from a discrete mixing distribution. Extended models account for school leavers' option of returning to school rather than starting work as a competing risk. We find that early cannabis use leads young men to accept job offers more quickly and at a lower wage rate compared to otherwise similar males who did not use cannabis. These effects are present only for those who use cannabis for longer than a year before leaving school. Overall, our findings are consistent with a mechanism whereby early non-experimental cannabis use leads to greater impatience in initial labor market decision-making.
Subjects: 
multivariate duration models
discrete factors
cannabis use
job search
wages
JEL: 
C41
I12
J01
Document Type: 
Working Paper

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