Jonathan Ashworth, 08 February 2019

On 17 October 2018, Canada legalised recreational cannabis use, with an immediate effect on how Canadian people use cash. Jonathan Ashworth explains to Tim Phillips how legalisation crimps the black economy.

Charles Goodhart, Jonathan Ashworth, 22 January 2019

Canada is the first major developed nation to have legalised recreational cannabis use. This column argues that movements in cash in circulation around the time of legalisation seem to provide early evidence that Prime Minister Trudeau’s policy has already been successful in crimping the black economy. If around one-quarter of the cannabis market remains illegal, as recently estimated by Statistics Canada, over time legalisation could reduce the size of the total underground economy by around 4% or 5%.

Nicholas W. Papageorge, Gwyn C. Pauley, Mardge Cohen, Tracey E. Wilson, Barton H. Hamilton, Robert Pollak, 01 April 2017

A link has been established between domestic violence and poor labour market outcomes. This column uses US data to explore the relationship between health and both domestic violence and drug use. HIV+ women who benefitted from the introduction of a medical innovation that delayed the onset of immune system decline experienced less domestic violence and reduced their drug use. Ignoring the link between medical innovation, health, and outcomes such as these is likely to lead to underinvestment in research.

Abigail Wozniak, 24 May 2014

There is concern that worker screening may aggravate discrimination against disadvantaged groups, but its effects may be counterintuitive. This column presents recent evidence on the effect of drug testing on hiring practices by race in the US. Removing this channel of information asymmetry allows employers to distinguish workers by this relevant characteristic rather than relying on their priors; the result is that hiring of non-drug-using African-Americans increases, at the expense of white women.

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