The Long-term Labor Market Effects of Drug Prohibition

The U.S. job numbers for March, released today, show moderate, although not spectacular short-term gains: 120 thousand new payroll jobs, unemployment rate down a notch to 8.2 percent. Long-term indicators are less healthy. In particular, as the chart shows, the employment-population ratio fell by 0.1 percent and remains just a fraction above the all-time low it reached last July. Improving that number will require not just fiscal and monetary stimulus, but structural labor market reform. Legalizing marijuana would be a good start. Read more>>>