The Effects of Employer Drug Testing on Labor Market Outcomes
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- drug tests; employer drug testing; labor market outcomes
In the 1980’s, U.S. employers began requiring drug tests of their employees and job applicants on a large scale. While this increase in testing represents a large intervention into the U.S. labor market, the effects of this intervention had not yet been evaluated on a market-wide scale. This study examines the impact of widespread employer drug testing from the perspective of the labor market as a whole. It analyzes whether testing changed the sort of drug users and non-users across sectors of employment, and whether testing itself altered relative labor market outcomes. Data from the Current Population Survey spanning 1980 – 1999 are used.