The Economics of Workplace Drug Testing
50 U.C. Davis L.Rev. 707
33 Pages Posted: 17 Oct 2016 Last revised: 12 Mar 2018
Date Written: August 1, 2016
Workplace drug testing is routinely criticized as irrational, unproductive, and even motivated by nefarious intent. This article analyzes the costs and benefits of workplace drug testing within the context of a complex business environment. Even in a drug-policy vacuum, workplace drug testing is shown to be rational under certain circumstances. The rationality of a drug-testing regime strengthens during a societal War on Drugs and weakens slightly as society transitions into a drug-enforcement regime that experiences legalization at the state level and enforcement at the national level. Throughout, however, the optimum level of workplace drug testing is likely never zero.
Keywords: War on Drugs, Legalization, Decriminalization, Drug-testing
JEL Classification: D21, I18, J28, J59, K20, L11, L21, M21, M59
Suggested Citation: Suggested Citation