This paper develops a method to correct for non-random measurement error in a binary indicator of illicit drugs. Our results suggest that estimates of the effect of self reported prenatal drug use on birth weight are biased upwards by measurement error -- a finding contrary to predictions of a...

This paper examines the effects of cocaine and marijuana use on the wages of a sample of young adults drawn from the NLS Youth Cohort. The endogeneity of drug use in a wage equation is considered and a 2SLS procedure is implemented. The rather surprising results suggest that for this sample,...