This paper uses marijuana decriminalization laws, passed in 21 states over the last 40 years, to analyze the differences in earnings and employment that result from being arrested. A differences-in-differences model is used to exploit the state-by-year variation in arrests resulting from marijuana decriminalization laws. Data from the FBI’s Uniform Crime Reporting statistics and the Current Population Survey allow for age, gender and race specific estimates, which is critical considering the heterogeneity in rates of arrests across these delineations. Labor market outcomes in the CPS allow for an analysis of whether decriminalization laws affect extensive and intensive margins. Decreased penalties for marijuana possession are positively correlated with the probability of employment, although the results are imprecise. Additionally, there are non-trivial increases in weekly earnings for individuals living in states with decreased penalties, with the effects being greatest for black adults. This result is consistent with existing literature that suggests black adults, especially men, stand to benefit the most from removing these penalties.
"In states with laws allowing medical marijuana, researchers tied the accessibility of cannabis to a nearly 7% decline in workers’ comp claims. When there were claims, they were for shorter periods of time, on average, after medical marijuana was legalized, according to the analysis in Health Economics."
This paper provides additional evidence about the importance of pain management therapies, in particular those that lie outside of traditional pharmaceuticals, on improving work capacity using workers compensation records.
Washington state collected a total of $395.5 million in 2019.
Farmers could Cannabis is “the most lucrative cash crop in the world.” The cannabis market is predicted to generate global revenues of $146 billion by 2025."
In the past twenty years, twenty-eight states and the District of Columbia have passed some form of medical marijuana law. Using quarterly data on all fee-for-service Medicaid prescriptions in the period 2007–14, we tested the association between those laws and the average number of prescriptions filled by Medicaid beneficiaries. We found that the use of prescription drugs in fee-for-service Medicaid was lower in states with medical marijuana laws than in states without such laws in five of the nine broad clinical areas we studied. If all states had had a medical marijuana law in 2014, we estimated that total savings for fee-for-service Medicaid could have been $1.01 billion. These results are similar to those in a previous study we conducted, regarding the effects of medical marijuana laws on the number of prescriptions within the Medicare population. Together, the studies suggest that in states with such laws, Medicaid and Medicare beneficiaries will fill fewer prescriptions.
Both federal and state budgets would benefit from drug legalization policies. This report estimates that $47.9 billion is spent annually on drug prohibition enforcement, whereas $58.8 billion could potentially be raised in tax revenue. Combined, these figures suggest that the fiscal windfall of drug legalization could be as high as $107 billion. NC estimated savings $263.3 million.
The passage of state level marijuana decriminalization laws is associated with a reduction in marijuana possession arrests of 47.8% for all males and 29.8% for white males.
Real weekly earnings for white and black males increase by 4.3% in states after passage of marijuana decriminalization laws.
- The increase in weekly earnings is driven by higher hourly wages suggesting decriminalization laws are associated with higher quality employment.
"If all states had had a medical marijuana law in 2014, we estimated that total savings for fee-for-service Medicaid could have been $1.01 billion."
The results provide evidence that legalizing medical marijuana improved workplace safety for workers aged 25-44. Further investigation is required to determine whether this result is attributable to reductions in the consumption of alcohol and other substances that impair cognitive function, memory, and motor skills.
In states with laws allowing medical marijuana, researchers tied the accessibility of cannabis to a nearly 7% decline in workers’ comp claims. When there were claims, they were for shorter periods of time, on average, after medical marijuana was legalized, according to the analysis in Health Economics.
Cannabis Based Municipal Bonds (CMBs) could offer governments and financial institutions a viable and creative way to aid in the recovery of lost revenues due to the COVID-19 pandemic, says a newly released report from cannabis and hemp advisory firm MPG Consulting.
While forecasters and budget staff gain more information, state officials can avoid budget shortfalls and keep program funding stable by being prudent in how they use these new collections. States should be careful to distinguish between marijuana revenue’s short-term growth and long-term sustainability. While these new dollars can fill immediate budget needs, they may prove unreliable for ongoing spending demands. Policymakers should look to other, more familiar sin taxes for lessons on how to manage marijuana tax revenue most effectively.