Economic crisis, unemployment and illegal drug consumption in SpainBruno Casal

  1. Bruno Casal 1
  2. Berta Rivera 1
  3. Luis Currais Nunes 1
  1. 1 Universidade da Coruña
    info

    Universidade da Coruña

    La Coruña, España

    ROR https://ror.org/01qckj285

Revista:
Applied economic analysis

ISSN: 2632-7627

Año de publicación: 2020

Volumen: 28

Número: 83

Páginas: 153-170

Tipo: Artículo

DOI: 10.1108/AEA-07-2019-0014 DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Applied economic analysis

Resumen

Purpose – The purpose of this paper is to analyse the association between drug consumption and unemployment. This paper also studies the differential association between these variables in both the preand current-crisis periods. The results are compared in an attempt to verify that the population of users is more vulnerable in terms of how likely they are to get and hold down a job in the labour market. Design/methodology/approach – Matching methods and microdata from the Survey on Alcohol and Drugs in Spain, EDADES are used. The use of these methods on the estimates carried out prove to be particularly effective in reducing treatment-selection bias. The authors’ interest is also to analyse the differential association between the interest variables in both the pre- and current-crisis periods. For this purpose, the authors also use the differences-in-differences (DID) estimation method between the two periods to check if the impact of drug use on unemployment depends on the economic context. The estimations are compared in an attempt to verify that the population of users is less likely to attain and hold down a job in the labour market than non-drug users. Findings – The results obtained in the current study are consistent with the hypothesis that drug use decreases an individual’s capacity and availability when he or she is trying to enter the labour market. In both 2007 and 2013, drug users were more likely to be unemployed, regardless of the type of drug. Differences in the probability of being unemployed intensify during an economic crisis. In light of these results, it is possible to conclude that the negative effect of drug consumption on an individual’s employability is increased during periods of economic recession. Research limitations/implications – The study presented here has some limitations. Firstly, crosssectional data were used to examine the causal relationship between consumption and employment. In this sense, the results are susceptible to bias. The unavailability of longitudinal data on the same individual made it impossible for the researchers to consider periods of abstinence, the duration of periods of consumption and how this consumption affected an individual’s productivity and his or her working situation. Another limitation is that certain relevant unemployment variables may have been omitted. Among the variables that affect an individual’s labour participation is the existence of sources of income as an alternative to market salaries. With state subsidies, income from illegal activities and money sent by family or friends, an individual may decide not to work. This problem could be mitigated if omitted variables operate in a similar way throughout both of the periods examined. Social implications – Given the results obtained in this paper, the authors believe that public policy conclusions should be mainly concerned with the importance of implementing proactive employment policies, along with family support programmes and a greater role for primary care among the people with the highes risks of exclusion. Health treatment should go jointly with measures that make it easier for individuals to enter the workforce. These steps would only be possible with an improved level of education and more complete professional profiles, to increase motivation when individuals seek employment. Originality/value – This study could make various contributions to the existing body of evidence. In the authors’ knowledge, this is the first attempt to document the effect of the economic crisis on the employability of the drug-using population in contrast with the general population. Moreover, a methodology is presented that provides an alternative to those used in earlier studies, in terms of reducing treatment-selection bias. At the same time, the use of a DID estimation method between pre- and current-crisis periods allow us to check if the impact of drugs consumption on unemployment depends on the economic context.

€ Ver financiación

Información de financiación

Funding for this study was provided by the Spanish Ministry of Science and Innovation, (Grant number ECO2013-48217).

Financiadores

Referencias bibliográficas

  • Alexandre, P.K. and French, M.T. (2004), “Further evidence on the labour market effects of addiction: chronic drug use and employment in metropolitan Miami”, Contemporary Economic Policy, Vol. 22 No. 3, pp. 382-393.
  • Arkes, J. (2012), “How does youth cigarette use respond to weak economic periods? Implications for the current economic crisis”, Substance Use andMisuse, Vol. 47 No. 4, pp. 375-382.
  • Arroyo, E., Cabrera-Le�on, A., Renart, G., Saurina, C., Saurina, L.S., Daponte, A. and Saez, M. (2019), “Did psychotropic drug consumption increase during the 2008 financial crisis? A cross-sectional population-based study in Spain”, BritishMedical Journal Open, Vol. 9 No. 1.
  • Artazcoz, L., Benach, J., Borrell, C. and Cortes, I. (2004), “Unemployment and mental health: understanding the interactions among gender, family roles, and social class”, American Journal of Public Health, Vol. 94 No. 1, pp. 82-88.
  • Ayllón, S. and Ferreira-Batista, N.N. (2018), “Unemployment, drugs and attitudes among European youth”, Journal of Health Economics, Vol. 57, pp. 236-248.
  • Böckerman, P. and Ilmakunnas, P. (2009), “Unemployment and self-assessed health: evidence from panel data”,Health Economics, Vol. 18 No. 2, pp. 161-179.
  • Buchmueller, T.C. and Zuvekas, S.H. (1998), “Drug use, drug abuse, and labour market outcomes”, Health Economics, Vol. 7 No. 3, pp. 229-245.
  • Caliendo, M. and Kopeinig, S. (2008), “Some practical guidance for the implementation of propensity score matching”, Journal of Economic Surveys, Vol. 22 No. 1, pp. 31-72.
  • Chang, S.S., Gunnell, D.L., Steme, J.A., Lu, T.H. and Cheng, A.T. (2009), “Was the economic crisis 1997- 1998 responsible for rising suicide rates in East/Southeast Asia? A time-trend analysis for Japan, Hong Kong, South Korea, Taiwan, Singapore and Thailand”, Social Science and Medicine, Vol. 68 No. 7, pp. 1322-1331.
  • Colell, E., Sánchez, -Niubò, A., Delclos, J.L., Benavides, F.G. and Domingo-Salvany, A. (2015), “Economic crisis and changes in drug use in the Spanish economically active population”, Addiction, Vol. 110 No. 7, pp. 1129-1137.
  • Compton, W.M., Gfroerer, J., Conway, K.P. and Finger, M.S. (2014), “Unemployment and substance outcomes in the United States 2002-2010”, Drug and Alcohol Dependence, Vol. 142, pp. 350-353.
  • Costa, C., De Grauwe, P., Sabadash, A. and Montanari, L. (2011), “Unemployment and drug treatment”, International Journal of Drug Policy, Vol. 22 No. 5, pp. 366-373.
  • Dávalos, M.E., Fang, H. and French, M.T. (2012), “Easing the pain of an economic downturn: macroeconomic conditions and excessive alcohol consumption”, Health Economics, Vol. 21 No. 11, pp. 1318-1335.
  • De Goeij, M., Suhrcke, M., Toffolutti, V., Van de Mheen, D., Schoenmakers, T.M. and Kunst, A.E. (2015), “How economic crisis affect alcohol consumption and alcohol-related health problems: a realist systematic review”, Social Science and Medicine, Vol. 131, pp. 131-1456.
  • Dee, T.S. (2001), “Alcohol abuse and economic conditions: evidence from repeated cross-sections of individual-level data”,Health Economics, Vol. 10 No. 3, pp. 257-270.
  • Delegación del Gobierno para el Plan Nacional sobre Drogas [DGPNSD] (2013), Memoria Del Plan Nacional Sobre Drogas, Ministerio de Sanidad, Servicios Sociales e Igualdad, Madrid.
  • Delegación del Gobierno para el Plan Nacional sobre Drogas [DGPNSD] (2015), Memoria Del Plan Nacional Sobre Drogas, Servicios Sociales e Igualdad, Madrid: Ministerio de Sanidad.
  • Dom, G., Samochowiec, J., Evans-Lacko, S., Wahlbeck, K., Van Hal, F. and McDaid, D. (2016), “The impact of the 2008 economic crisis on substance use patterns in the countries of the European union”, International Journal of Environmental Research and Public Health, Vol. 13 No. 1, p. 122.
  • Dubanowicz, A. and Lemmens, P. (2015), “Impact of the economic recession on addiction-pone behaviours”, in Anderson, P. Rehm, J. and Room, R. (Eds), The Impact of Addictive Substances and Behaviours on Individual and SocietalWell-Being, Oxford University Press, Oxford.
  • Economou, A., Nikolaou, A. and Theodossiou, I. (2008), “Are recessions harmful to health after all? Evidence from the European union”, Journal of Economic Studies, Vol. 35 No. 5, pp. 368-384.
  • European Monitoring Centre for Drugs and Drug Addiction [EMCDDA] (2009), Polidrug Use: patterns and Response, Publications Office of the European Union, Luxembourg.
  • European Monitoring Centre for Drugs, and Drug Addiction [EMCDDA] (2012), Annual report 2012: The state of the drug problem in Europe, Publications Office of the European Union, Luxemburg.
  • Freeman, D.G. (1999), “A note on economic conditions and alcohol problems”, Journal of Health Economics, Vol. 18 No. 5, pp. 661-670.
  • French, M.T., Roebuck, M.C. and Kebreau, P. (2001), “Illicit drug use, employment, and labour force participation”, Southern Economic Journal, Vol. 68 No. 2, pp. 349-368.
  • Gill, A.M. and Michaels, R.J. (1992), “Does drug use lower wages?”, Industrial and Labor Relations Review, Vol. 45 No. 3, pp. 419-434.
  • Harhay, M.O., Bor, J., Basu, S., McKee, M., Mindell, J.S., Shelton, N.J. and Stuckler, D. (2013), “Differential impact of the economic recession on alcohol use among white British adults, 2004- 2010”, European Journal of Public Health, Vol. 24 No. 3, pp. 410-415.
  • Henkel, D. (2011), “Unemployment and substance use: a review of the literature (1990-2010)”, Current Drug Abuse Reviews, Vol. 4 No. 1, pp. 4-27.
  • Instituto Nacional de Estadística [INE] (2014), Encuesta de Poblaci�on Activa, INE, Madrid. Jenkins, R., Bhugra, D., Bebbington, P., Brugha, T., Farrell, M., Coid, J., Fryers, T., Weich, S., Singleton,
  • N. and Meltzer, H. (2008), “Debt, income and mental disorder in the general population”, Psychological Medicine, Vol. 38 No. 10, pp. 1485-1493.
  • Kaestner, R. (1991), “The effect of illicit drug use on the wages of young adults”, Journal of Labor Economics, Vol. 9 No. 4, pp. 381-412.
  • Khan, S., Murray, R. and Barnes, G. (2002), “A structural equation model of the effect of poverty and unemployment on alcohol abuse”,Addictive Behaviors, Vol. 27 No. 3, pp. 405-423.
  • Kondilis, E., Giannakopoulos, S., Gavana, M., Ierodiakonou, I., Waitzkin, H. and Benos, A. (2013), “Economic crisis, restrictive policies, and the population’s health and health care: the Greek case”, American Journal of Public Health, Vol. 103 No. 6, pp. 973-979.
  • MacDonald, Z. and Pudney, S. (2000), “Illicit drug use, unemployment, and occupational attainment”, Journal of Health Economics, Vol. 19 No. 6, pp. 1089-1115.
  • Marmot, M.G. and Bell, R. (2009), “How will the financial crisis affect health?”, BMJ, Vol. 338 No. apr01 3, p. b1314.
  • Martín, N. and Vall, J. (2016), “Effects of the great recession on drugs consumption in Spain”, Economics and Human Biology, Vol. 22, pp. 103-116.
  • Mathers, C.D. and Schofield, D.J. (1998), “The health consequences of unemployment: the evidence”, Medical Journal of Australia, Vol. 168 No. 4, pp. 178-182.
  • Mattei, G., Ferrari, S., Pingani, L. and Rigatelli, M. (2014), “Short-term effects of the 2008 great recession on the health of the Italian population: an ecological study”, Social Psychiatry and Psychiatric Epidemiology, Vol. 49 No. 6, pp. 851-858.
  • Medel-Herrero, A. and Gomez-Beneyto, M. (2019), “The impact of 2008 economic crisis on the increasing number of young psychiatric inpatients”, Revista de Psiquiatría y Salud Mental (English Edition), Vol. 12 No. 1, pp. 28-36.
  • Nagelhout, G.E., Hummel, K., de Goeij, M., de Vries, H., Kaner, E. and Lemmens, P. (2017), “How economic recessions and unemployment affect illegal drug use: a systematic realist literature review”, International Journal of Drug Policy, Vol. 44, pp. 69-83.
  • Observatorio Español sobre Drogas [OED] (2007), Encuesta Domiciliaria Sobre Alcohol y Drogas en España (EDADES), 1995-2007, Delegación del Gobierno para el Plan Nacional sobre Drogas, Ministerio Del Interior, Madrid.
  • Observatorio Español sobre Drogas [OED] (2013), Encuesta Domiciliaria Sobre Alcohol y Otras Drogas en España (EDADES), 1995-2013, Delegación del Gobierno para el Plan Nacional sobre Drogas, Ministerio Del Interior, Madrid.
  • Register, C.A. and Williams, D.R. (1992), “Labour market effects of marijuana and cocaine use among youngmen”, Industrial and Labor Relations Review, Vol. 45 No. 3, pp. 435-448.
  • Ritter, A. and Chalmers, J. (2011), “The relationship between economic conditions and substance use and harm”,Drug and Alcohol Review, Vol. 30 No. 1, pp. 1-3.
  • Ruhm, C.J. and Black, W.E. (2002), “Does drinking really decrease in bad times?”, Journal of Health Economics, Vol. 21 No. 4, pp. 659-678.
  • Silva, M., Resurrecci�on, D.M., Antunes, A., Frasquilho, D. and Cardoso, G. (2018), “Impact of economic crises on mental health care: a systematic review”.
  • Skapinakis, P., Weich, S., Lewis, G., Singleton, N. and Araya, R. (2006), “Socio-economic position and common mental disorders. Longitudinal study in the general population in the UK”, British Journal of Psychiatry, Vol. 189 No. 2, pp. 109-117.
  • Stata Corp (2015), Stata Statistical Software: Release 14, Stata Corp LP, College Station, TX.
  • Stuckler, D., Basu, S., Suhrcke, M., Coutts, A. and McKee, M. (2011), “Effects of the 2008 recession on health: a first look at European data”,The Lancet, Vol. 378 No. 9786, pp. 124-125.
  • Urbanos-Garrido, R. and Lopez-Valcarcel, B. (2015), “The influence of the economic crisis on the association between unemployment and health: an empirical analysis for Spain”, The European Journal of Health Economics, Vol. 16 No. 2, pp. 175-184.
  • Van Hal, G. (2015), “The true cost of the economic crisis on psychological well-being: a review”, Journal of Psychology Research and BehaviorManagement, Vol. 8, pp. 17-25.
  • Van Ours, J.C. (2006), “Cannabis, cocaine and jobs”, Journal of Applied Econometrics, Vol. 21 No. 7, pp. 897-917.
  • Wilkinson, R. and Marmot, M. (Eds) (2003), Social Determinants of Health: The Solid Facts, 2nd ed., WHO Regional Office for Europe, Copenhagen.
  • World Health Organization [WHO] (2009), Financial Crisis and Global Health: report of a High-Level Consultation, World Health Organization, Geneva.
  • World Health Organization [WHO] (2011), Impact of Economic Crises on Mental Health, World Health Organization, Geneva.
  • Leuven, E. and Sianesi, B. (2003), “PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing”, Version 4.0. 11. Research Papers in Economics.
Fuente de los datos: Dialnet