Marijuana might hurt Elon Musk's productivity, but legalization has helped US workers find jobs and earn higher wages, a study finds

• Elon Musk said in 2018 that marijuana isn't "good for productivity."
• But a new study found legalization has had a positive impact on Americans' employment and wages.

Elon Musk might not be a fan of marijuana, but its legalization is helping some US workers find jobs and earn higher wages.

That's according to a new working paper published by the National Bureau of Economic Research, which claims to be the first study to explore the impact of recreational marijuana legalization on the employment and wages of American workers.

While 68% of the public supports legalization, the authors noted that there is disagreement about the impact it could have on workers' productivity and well being. The paper begins with two quotes, which serve to illustrate — perhaps somewhat in jest — the two sides of the argument.

Elon Musk in 2018: "I'm not a regular smoker of weed...I don't find that it is very good for productivity."

Seth Rogen in 2011: "I smoke a lot of weed when I write."

The analysis, which was written by four economics professors from San Diego State University and Bentley University, found "little support" for the idea that legalization has reduced "employment or wages of working-age individuals."

Instead, the authors found some evidence of "modest increases in employment or wages" for individuals over age 30, younger racial and ethnic minorities, and those working in the agriculture industry.

The authors speculated the boost in the agriculture sector is tied to the introduction of the cannabis industry. Some older workers and minorities, meanwhile, they said, may have substituted opioids — which can "generate more harm to employment" — for marijuana, and experienced better outcomes in part due to this shift.

"These results are consistent with the opening of a new licit industry for marijuana and — especially for older individuals — a substitution away from harder substances such as opioids," they said.

Over 158 million Americans in 21 states and D.C. live in a state where marijuana has been legalized. The state-licensed cannabis industry generated over 100,000 US jobs in 2021, employed nearly half a million workers as of 2022, and appears poised for growth in the years to come. US cannabis sales are projected to grow from $25 billion in 2021 to $40 billion in 2026, according to a report last year from the cannabis data company BDSA.

Legalization has allowed some people with prior marijuana convictions to have their records wiped clean, making it easier for them to find employment. And in New York, for instance, where licenses to open cannabis dispensaries are still being doled out, the goal is for half of them to go to social equity applicants, which include minorities, women, and those from communities impacted by the drug war.

While the industry is still in its early stages, the NBER study suggests it's produced some positive outcomes so far for American workers. In the past, the authors said, critics have argued marijuana use could lead to diminished cognition, de-motivation, lethargy, poorer physical and psychological health, the use of harder drugs, and lower educational attainment.

Proponents, however, have argued that along with creating jobs, the cannabis industry could help some people reduce opioid use, drink less alcohol, ease physical ailments, manage stress, and improve psychological health, all of which could help workers find better outcomes. The paper also notes that young Black and Hispanic men in particular have found it harder to find jobs due to criminal records for marijuana possession, a challenge legalization has helped alleviate to some degree.

Given marijuana legalization is a relatively new development, the authors said it will take time to decipher any long-run impacts on labor market performance, despite the positive early indicators from their research.