Economics and Accounting Honors Theses

Date of Creation

12-9-2020

Degree Type

Departmental Honors Thesis - Restricted Access

First Advisor

Professor Conor Carney

Abstract

Employing public educational and commercial data from the State of Washington, this study aims to estimate the impact of the establishment of a marijuana dispensary on neighborhood school’s student growth percentiles (SGPs) on standardized Math and English exams using difference-in-difference regression analysis. The results of the study indicate that the placement of a recreational marijuana dispensary in the vicinity of a school is correlated to negative effects on student growth rates, corresponding to a statistically significant 2.81 percentage point reduction in the proportion of students achieving high growth on all subjects and a 2.32 point increase in students reporting low growth. In contrast with previous studies estimating the effects of dispensaries and cannabis use on teens, the negative impact on growth is largely driven by a pronounced effect on English scores rather than Math scores, with a 3.35 point decrease in high growth and 3.1 point increase in low growth students when accounting for school fixed effects. The results suggest that there are educational consequences to marijuana legalization and accessibility that may influence long-term student outcomes; therefore, it is important for policy makers to consider the impact of marijuana not just in terms of legislation, but also of zoning regulations and its impact on availability to teens.

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