Is the Rise in Illicit Opioids Affecting Labor Supply and Disability Claiming Rates?

Abstract

as well as participants at the 2019 Research and Disability Research Consortium Meeting. John Jankowski provided help in accessing and calculating SSDI/SSI variables for some of the outcomes in this paper. This project was approved by RAND's IRB.NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Economic Studies on the Opioid Crisis: A Review

“…Beheshti ( 2019b) s hows t hat restrictions on hydrocodone prescribing, i mplemented i n 2014, led t o i mprovements i n l abor m arket outcomes. Park and Powell ( 2020) find t hat t he crisis's transition t o i llicit opioids l ed t o reduced l abor m arket engagement, and t o rising rates of disability applications and enrollment. Rietveld and Patel ( 2020) demonstrate t hat additional opioid exposure i s negatively associated with m easures of entrepreneurship and s mall business formation.…”

Trade networks, heroin markets, and the labor market outcomes of Vietnam veterans

“…Focusing on the ongoing US heroin-fentanyl epidemic which began around 2010, 12 Cho et al ( 2021) document a detrimental effect of heroin use on employment and labor force participation rates, while also observing an increased uptake of Social Security Disability Insurance (SSDI) income. Similarly, Park and Powell (2021) show a decline in state-level employment-topopulation ratio, number of hours worked, and earnings, while also noting an increase in disability applications and beneficiaries.…”

“… For example, from 1969 For example, from to 1971 seizures in RVN increased by 2,610% from 10 to 271 pounds, while drug arrests saw a 122% rise from 2,911 to 6,474 (USSenate, 1972).12 As reformulation of the prescription opioid OxyContin forced many OxyContin addicts to switch to heroin and fentanyl (a synthetic opioid more potent than heroin) instead(Park and Powell, 2021).…”

Economic Studies on the Opioid Crisis: A Review

“…Beheshti ( 2019b) s hows t hat restrictions on hydrocodone prescribing, i mplemented i n 2014, led t o i mprovements i n l abor m arket outcomes. Park and Powell ( 2020) find t hat t he crisis's transition t o i llicit opioids l ed t o reduced l abor m arket engagement, and t o rising rates of disability applications and enrollment. Rietveld and Patel ( 2020) demonstrate t hat additional opioid exposure i s negatively associated with m easures of entrepreneurship and s mall business formation.…”