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Young adult substance use following involuntary job loss

Nicholas A. Jolly
Nicholas A. Jolly
 and 
Gwendolyn Davis
Gwendolyn Davis
   | Nov 11, 2023
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Published Online: Nov 11, 2023
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Received: Feb 06, 2023
DOI: https://doi.org/10.2478/izajole-2023-0003
Keywords
© 2023 Nicholas A. Jolly et al., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.

Figure 1

Displacement's Effect on Labor Market Outcomes.
Displacement's Effect on Labor Market Outcomes.

Figure 2

Displacement's Effect on Substance Use.
Displacement's Effect on Substance Use.

Figure H-1

Event History Analysis – Labor Market Outcomes.
Event History Analysis – Labor Market Outcomes.

Figure H-2

Event History – Substance Use.
Event History – Substance Use.

Heterogeneity by Race

Panel A: Labor Market Outcomes
Log Earnings Real Earnings Employed
Non-White −0.504 (0.334) −6,288.925*** (1,392.415) −0.145*** (0.052)
White −0.050 (0.406) 546.915 (2510.808) −0.125** (0.058)
R2 0.18 0.17 0.09
N 6,501 8,416 8,416
# Individuals 2,296 2,461 2,461
Sig. Different No 5% No
Panel B: Substance Use at Extensive Margin
Currently Smokes Currently Drinks Ever Used Marijuana Ever Used Other Drugs Ever Used Pain Relievers/Narcotics
Non-White 0.038 (0.030) 0.048 (0.041) −0.049 (0.040) −0.018 (0.031) −0.082 (0.085)
White −0.060 (0.037) 0.048 (0.047) −0.034 (0.041) −0.041 (0.038) 0.060 (0.129)
R2 0.00 0.11 0.07 0.02 0.06
N 8,398 8,390 8,369 8,369 3,906
# Individuals 2,461 2,461 2,461 2,461 1,778
Sig. Different 5% No No No No
Panel C: Substance Use at Intensive Margin
# Cigarettes Smoked Per Day Drinks Several Times per Month # Drinks per Session # Times Used Marijuana in Past 12 Months # Times Used Pain Relievers Past 12 Months
Non-White −0.013 (1.351) −0.012 (0.067) 0.468 (0.325) 5.123** (2.483) −5.342 (4.714)
White 0.223 (1.032) −0.039 (0.063) −0.294 (0.318) −2.184 (1.988) −5.776** (2.575)
R2 0.03 0.06 0.04 0.03 0.04
N 1,152 5,359 5,315 3,988 1,221
# Individuals 530 2,009 2,002 1,579 860
Sig. Different No No 10% 5% No

Heterogeneity - Relative Differences

# Cigarettes # Drinks Marijuana Pain Relievers
Panel A: Gender
Men −0.058 (0.206) 0.306*** (0.100) 0.431 (0.349) −0.089 (0.638)
Women −0.076 (0.145) 0.106* (0.062) 0.332 (0.507) −0.645 (0.475)
R2 0.04 0.02 0.04 0.06
N 1,263 4,730 2,773 318
# Individuals 458 1,496 896 211
Sig. Different No 10% No No
Panel B: Race
Non-White −0.064 (0.147) 0.296*** (0.081) 0.154 (0.311) −0.285 (0.423)
White −0.063 (0.231) 0.117 (0.091) 0.735 (0.559) −0.777 (0.718)
R2 0.04 0.02 0.04 0.06
N 1,259 4,726 2,773 318
# Individuals 457 1,495 896 211
Sig. Different No No No No
Panel C: Living Arrangements
With Others 0.104 (0.220) 0.212*** (0.071) 0.282 (0.365) −0.422* (0.254)
On Own −0.230 (0.152) 0.216** (0.104) 0.502 (0.461) −0.478 (0.780)
R2 0.04 0.02 0.04 0.06
N 1,263 4,730 2,773 318
# Individuals 458 1,496 896 211
Sig. Different No No No No

The Effect of Substance Use on Employment

Smoking Drinking Marijuana Other Drugs Pain Reliever
Panel A: Non-users in t – 2 & Users in t = 0
After −0.194** (0.084) −0.088** (0.043) −0.146** (0.057) −0.118* (0.061) −0.171 (0.106)
R2 0.09 0.09 0.09 0.09 0.02
N 7,962 8,325 8,100 8,056 3,809
# Individuals 2,345 2,443 2,376 2,370 1,729
Panel B: Non-users in t – 2 & t = 0
After −0.111*** (0.024) −0.176*** (0.040) −0.128*** (0.031) −0.130*** (0.024) −0.145** (0.057)
R2 0.09 0.09 0.09 0.09 0.02
N 9,857 8,512 8,869 9,855 4,031
# Individuals 2,806 2,474 2,557 2,808 1,815

Non-Random Attrition

Employed Current Smoke Current Drink Marijuana Other Drug Pain Reliever
Attrite 0.006 (0.010) 0.008 (0.016) −0.015 (0.012) 0.002 (0.013) 0.005 (0.014) 0.000 (0.000)
R2 0.68 0.68 0.69 0.69 0.69 1.00
N 5,725 5,718 5,716 5,707 5,707 884
# Individuals 1,417 1,417 1,417 1,417 1,417 573

Heterogeneity by Living Arrangements

Panel A: Labor Market Outcomes
Log Earnings Real Earnings Employed
With Others −0.838** (0.338) −5,882.592*** (1,195.762) −0.127*** (0.047)
On Own 0.669* (0.385) 201.614 (2794.817) −0.153** (0.069)
R2 0.18 0.17 0.09
N 6,505 8,422 8,422
# Individuals 2,297 2,463 2,463
Sig. Different 1% 5% No
Panel B: Substance Use at Extensive Margin
Currently Smokes Currently Drinks Ever Used Marijuana Ever Used Other Drugs Ever Used Pain Relievers/Narcotics
With Others 0.004 (0.028) 0.053 (0.040) −0.072** (0.034) 0.003 (0.030) 0.068 (0.101)
On Own −0.001 (0.042) 0.036 (0.049) 0.012 (0.054) −0.067* (0.040) −0.161* (0.097)
R2 0.00 0.11 0.07 0.02 0.06
N 8,403 8,395 8,374 8,374 3,907
# Individuals 2,463 2,463 2,463 2,463 1,779
Sig. Different No No No No 10%
Panel C: Substance Use at Intensive Margin
# Cigarettes Smoked Per Day Drinks Several Times per Month # Drinks per Session # Times Used Marijuana in Past 12 Months # Times Used Pain Relievers Past 12 Months
With Others 0.879 (1.199) −0.067 (0.059) 0.084 (0.268) 1.696 (2.148) −0.860 (1.539)
On Own −1.190 (0.795) 0.041 (0.068) 0.225 (0.431) 1.901 (2.649) −13.398** (5.556)
R2 0.03 0.06 0.03 0.02 0.05
N 1,156 5,363 5,319 3,991 1,221
# Individuals 531 2,010 2,003 1,580 860
Sig. Different No No No No 5%

Descriptive Statistics (means) of Selected Variables

Non-Displaced (matched) Displaced (matched)
Total Earningsa,b $3,094.56 $2,214.53
Hours Workedb 18.43 21.14
Employed 54.13% 55.35%
Age 18.93 18.78
Female 53.59% 50.20%
Whitec 35.86% 36.40%
Responsible for Own Household 15.02% 14.88%
Education
  < High School 13.86% 13.69%
  High School Degree/GED 23.41% 29.700%
  Some College/Associates Degree 61.14% 56.38%
  Bachelor's Degree 1.36% 0.23%
  Master's Degree 0.23% -
Currently Smoke 18.94% 21.65%
Number Cigarettes/Day 8.49 8.72
Currently Drink Alcohol 44.25% 46.55%
Drink at Least Several Times/Month 50.15% 50.29%
Number Drinks/Session 3.71 3.64
Ever Used Marijuana 43.55% 46.07%
Number of Uses of Marijuana previous 12 Monthsd 11.82 14.4
Ever Used Amphetamines, Cocaine, Barbiturates, or Tranquilizers 16.42% 15.86%
Ever Used Pain Relievers/Narcotics 27.93% 34.43%
Number of Uses of Pain Relievers/Narcotics previous 9.39 6.17
12 Monthsd
Total Number of Individuals 739 739

Displacement's Effect on Labor Market Outcomes

Earnings Log Earnings Employed
After −1,991.898*** (663.265) −0.647*** (0.138) −0.112*** (0.020)
R2 0.20 0.15 0.08
N 6,043 4,760 6,043
# Individuals 1,307 1,263 1,307

Displacement's Effect on Living Arrangements

On Own Transition
After −0.024 (0.015) −0.017 (0.013)
R2 0.42 0.09
N 10,816 10,816
# Individuals 3,039 3,039

Sensitivity Analysis - Substance Use: Intensive Margin

# Cigarettes Smoked per Day Drinks Several Times per Month # Drinks Consumed per Session # Times Used Marijuana past 12 Months # Times used Pain Relievers/Narcotics past 12 Months
Panel A: Displaced from Main Job
After 1.503* (0.841) −0.036 (0.046) 0.785*** (0.230) 1.287 (1.371) −1.451 (2.836)
R2 0.03 0.05 0.03 0.02 0.04
N 1,721 6,883 6,825 5,320 1,419
# Individuals 748 2,516 2,509 2,019 978
Panel B: Employed at Baseline Interview
After 0.412 (0.623) −0.016 (0.035) 0.560*** (0.172) 1.396 (1.134) −4.750 (3.226)
R2 0.05 0.05 0.03 0.03 0.05
N 918 3,790 3,762 2,868 765
# Individuals 411 1,432 1,429 1,111 545
Panel C: Worked at Least 25 Hours per Week at Baseline Interview
After −0.084 (0.701) 0.008 (0.039) 0.669*** (0.210) 0.652 (1.171) −3.729 (2.969)
R2 0.03 0.03 0.04 0.02 0.13
N 758 2,805 2,785 2,186 417
# Individuals 310 885 887 714 286
Panel D: Displaced Workers Present from t – 2 and t + 2
After 0.589 (0.665) −0.055* (0.031) 0.454*** (0.151) 0.824 (0.950) −1.635 (2.576)
R2 0.03 0.05 0.03 0.02 0.04
N 1,539 6,362 6,307 4,883 1,315
# Individuals 665 2,299 2,292 1,834 901

Displacement's Effect on Attrition

Attrite
After 0.008 (0.016)
R2 0.68
N 5,725
# Individuals 1,417

Sensitivity Analysis - Substance Use: Extensive Margin

Currently Smokes Currently Drinks Ever Use Marijuana Ever Use Other Drugs Ever Use Pain Relievers
Panel A: Displaced from Main Job
After 0.032 (0.022) −0.020 (0.027) −0.075*** (0.025) −0.011 (0.021) 0.065 (0.068)
R2 0.00 0.11 0.07 0.03 0.06
N 10,790 10,781 10,759 10,759 4,486
# Individuals 3,039 3,039 3,039 3,039 2,004
Panel B: Employed at Baseline Interview
After 0.040** (0.017) 0.025 (0.025) −0.031 (0.020) 0.014 (0.020) 0.057 (0.046)
R2 0.00 0.09 0.06 0.03 0.06
N 5,767 5,763 5,758 5,758 2,523
# Individuals 1,695 1,695 1,695 1,695 1,147
Panel C: Worked at Least 25 Hours per Week at Baseline Interview
After 0.049** (0.020) 0.020 (0.026) −0.012 (0.023) 0.012 (0.024) 0.032 (0.070)
R2 0.01 0.07 0.06 0.04 0.05
N 3,999 3,996 3,994 3,994 1,098
# Individuals 989 989 989 989 475
Panel D: Displaced Workers Present between t – 2 and t + 2
After 0.028* (0.015) 0.019 (0.021) −0.034** (0.017) −0.001 (0.017) 0.043 (0.055)
R2 0.00 0.11 0.06 0.03 0.06
N 9,979 9,970 9,950 9,950 4,132
# Individuals 2,787 2,787 2,787 2,787 1,849

Displacement's Effect on Substance Use - Declining Economic Activity

Panel A: Extensive Margin
Currently Smokes Currently Drinks Ever Use Marijuana Ever Use Other Drugs
After 0.032 (0.027) 0.052 (0.034) 0.018 (0.029) 0.040 (0.029)
R2 0.00 0.11 0.07 0.03
N 8,585 8,577 8,559 8,559
# Individuals 2,492 2,492 2,492 2,492

Sensitivity Analysis - Labor Market Outcomes

Earnings Log Earnings Employed
Panel A: Displaced Main Job
After −6,673.086*** (849.543) −0.863*** (0.245) −0.406*** (0.033)
R2 0.17 0.16 0.10
N 10,816 8,460 10,816
# Individuals 3,039 2,863 3,039
Panel B: Employed at Baseline
After −4,616.058*** (949.157) −0.860*** (0.196) −0.141*** (0.022)
R2 0.23 0.14 0.12
N 5,781 4,914 5,781
# Individuals 1,695 1,655 1,695
Panel C: Works at Least 25 Hours at Baseline
After −4,896.733*** (1,456.795) −0.836*** (0.203) −0.179*** (0.030)
R2 0.12 0.17 0.07
N 4,005 3,589 4,005
# Individuals 989 986 989
Panel D: Displaced Workers Present between t–2 and t+2
After −4,993.206*** (848.074) −0.886*** (0.167) −0.117*** (0.024)
R2 0.17 0.17 0.08
N 10,004 7,802 10,004
# Individuals 2,787 2,617 2,787

Displacement's Effect on Substance Use

Panel A: Substance Use at Extensive Margin
Current Smokes Current Drink Ever Used Marijuana Ever Used Other Drugs Ever Used Pain Reliever/Narcotics
After 0.024* (0.013) 0.020 (0.018) 0.002 (0.015) 0.024* (0.014) −0.007 (0.030)
R2 0.00 0.10 0.05 0.02 0.07
N 6,034 6,028 6,015 6,015 1,883
# Individuals 1,307 1,307 1,307 1,307 695

Displacement's Effect on Substance Use by Type of Support – Extensive Margin

Cigarettes Alcohol Marijuana Other Drugs Pain Relievers/Narcotics
Panel A: Parental Support
After 0.045** (0.019) 0.035 (0.023) 0.016 (0.020) 0.031 (0.019) 0.054 (0.054)
R2 0.01 0.11 0.07 0.03 0.06
N 9,221 9,212 9,191 9,191 4,084
# Individuals 2,656 2,656 2,656 2,656 1,843
Panel B: Government Support
After 0.084** (0.036) −0.016 (0.048) −0.043 (0.040) 0.073* (0.038) −0.068 (0.116)
R2 0.01 0.11 0.07 0.03 0.06
N 8,138 8,131 8,111 8,111 3,786
# Individuals 2,388 2,388 2,388 2,388 1,728
Panel C: Own Support
After 0.030** (0.014) 0.040** (0.020) 0.006 (0.017) 0.023 (0.016) −0.018 (0.039)
R2 0.00 0.11 0.07 0.03 0.06
N 10,084 10,076 10,053 10,053 4,313
# Individuals 2,857 2,857 2,857 2,857 1,935

Heterogeneity by Gender

Panel A: Labor Market Outcomes
Log Earnings Real Employed
Men −0.908** (0.368) −3,174.104 (2,223.554) −0.077 (0.055)
Women 0.225 (0.354) −4002.388*** (1513.980) −0.184*** (0.054)
R2 0.18 0.17 0.09
N 6,505 8,422 8,422
# Individuals 2,297 2,463 2,463
Sig. Different 5% No No
Panel B: Substance Use at Extensive Margin
Currently Smokes Currently Drinks Ever Used Marijuana Ever Used Other Drugs Ever Used Pain Relievers/Narcotics
Men −0.001 (0.036) 0.008 (0.041) −0.061 (0.039) −0.022 (0.041) 0.047 (0.099)
Women 0.004 (0.031) 0.078* (0.045) −0.024 (0.042) −0.024 (0.028) −0.099 (0.098)
R2 0.00 0.11 0.07 0.02 0.06
N 8,403 8,395 8,374 8,374 3,907
# Individuals 2,463 2,463 2,463 2,463 1,779
Sig. Different No No No No No
Panel C: Substance Use at Intensive Margin
# Cigarettes Smoked Per Day Drinks Several Times per Month # Drinks per Session # Times Used Marijuana in Past 12 Months # Times Used Pain Relievers Past 12 Months
Men 0.667 (1.294) −0.054 (0.064) 0.624* (0.365) 2.149 (2.545) −7.610** (3.573)
Women −0.743 (0.807) 0.002 (0.065) −0.347 (0.265) 1.382 (2.152) −4.688 (3.749)
R2 0.03 0.06 0.04 0.02 0.04
N 1,156 5,363 5,319 3,991 1,221
# Individuals 531 2,010 2,003 1,580 860
Sig. Different No No 5% No No

Displacement's Effect on Substance Use by Type of Support – Intensive Margin

# Cigarettes Drinks Several Times per Month # Drinks per Session # Times Used Marijuana in Previous 12 Months # Times Used Pain Relievers in Previous 12 Months
Panel A: Parental Support
After 0.614 (0.834) −0.067* (0.035) 0.214 (0.152) 3.147*** (1.129) −1.313 (2.667)
R2 0.03 0.05 0.04 0.03 0.04
N 1,359 5,958 5,908 4,544 1,291
# Individuals 608 2,190 2,184 1,749 894
Panel B: Government Support
After 0.539 (1.009) 0.066 (0.060) 0.679** (0.334) 2.389 (1.615) −3.034 (2.231)
R2 0.03 0.06 0.03 0.02 0.05
N 1,097 5,181 5,135 3,877 1,180
# Individuals 506 1,941 1,934 1,543 829
Panel C: Own Support
After 0.034 (0.636) −0.036 (0.028) 0.324** (0.135) 2.324** (0.903) −2.030 (2.136)
R2 0.02 0.05 0.03 0.03 0.04
N 1,503 6,508 6,455 4,937 1,363
# Individuals 661 2,368 2,362 1,882 939

Displacement's Effect on Labor Market Outcome - Heterogeneity

Log Earnings Real Earnings Employed
Panel A: Gender
Men −0.816*** (0.184) −2,988.339*** (983.679) −0.108*** (0.028)
Women −0.694*** (0.200) −5573.236*** (867.409) −0.161*** (0.028)
R2 0.16 0.17 0.08
N 8,460 10,816 10,816
# Individuals 2,863 3,039 3,039
Sig. Different No 5% No
Panel B: Race
Non-White −0.946*** (0.178) −5,958.624*** (785.528) −0.151*** (0.025)
White −0.492** (0.212) −1481.940 (1177.504) −0.108*** (0.031)
R2 0.17 0.17 0.08
N 8,453 10,807 10,807
# Individuals 2,861 3,036 3,036
Sig. Different 10% 1% No
Panel C: Living Arrangements
With Others −0.984*** (0.184) −5,054.904*** (795.454) −0.086*** (0.026)
On Own −0.506** (0.202) −3360.716*** (1094.889) −0.193*** (0.030)
R2 0.17 0.17 0.09
N 8,460 10,816 10,816
# Individuals 2,863 3,039 3,039
Sig. Different 10% No 1%

Substance Use's Effect on Displacement

Panel A: Extensive Margin
Current Smoke Current Drink Ever Used Marijuana Ever Used Other Drugs Ever Used Pain Relievers/Narcotics
Job Loss 0.010 (0.022) −0.012 (0.013) 0.014 (0.014) 0.009 (0.017) −0.029 (0.026)
R2 0.01 0.01 0.01 0.01 0.00
N 7,768 7,761 7,755 7,755 2,510
# Individuals 3,038 3,037 3,038 3,038 1,793
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