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Jobs, Sectors, and Revenue: An Economic Assessment of Oregon’s Cannabis Legalization

Ephithite Lindholm, Fabian LU (2025) EOSK12 20251
Department of Economic History
Abstract
This thesis investigates the economic effects of recreational cannabis legalization in Oregon, using Idaho as a control group through a Difference-in-Differences framework. It focuses on three key areas: unemployment, sectoral labor shifts in agriculture, and state tax revenue. The findings show a slight increase in unemployment and no meaningful shift into agricultural employment, suggesting that legalization introduced short-term labor disruptions rather than lasting job growth. In contrast, the analysis reveals a significant rise in state tax revenue following legalization, supported by Oregon’s price-based tax model. Overall, the study concludes that while cannabis legalization can provide fiscal benefits, its broader economic impact... (More)
This thesis investigates the economic effects of recreational cannabis legalization in Oregon, using Idaho as a control group through a Difference-in-Differences framework. It focuses on three key areas: unemployment, sectoral labor shifts in agriculture, and state tax revenue. The findings show a slight increase in unemployment and no meaningful shift into agricultural employment, suggesting that legalization introduced short-term labor disruptions rather than lasting job growth. In contrast, the analysis reveals a significant rise in state tax revenue following legalization, supported by Oregon’s price-based tax model. Overall, the study concludes that while cannabis legalization can provide fiscal benefits, its broader economic impact is more limited and shaped by how legalization is implemented and managed. (Less)
Please use this url to cite or link to this publication:
author
Ephithite Lindholm, Fabian LU
supervisor
organization
course
EOSK12 20251
year
type
M2 - Bachelor Degree
subject
keywords
Cannabis Legalization, Difference-in-Differences (DiD), Employment Trends, Agricultural Sector, State Tax Revenue
language
English
id
9201785
date added to LUP
2025-08-18 10:50:24
date last changed
2025-08-18 10:50:24
@misc{9201785,
  abstract     = {{This thesis investigates the economic effects of recreational cannabis legalization in Oregon, using Idaho as a control group through a Difference-in-Differences framework. It focuses on three key areas: unemployment, sectoral labor shifts in agriculture, and state tax revenue. The findings show a slight increase in unemployment and no meaningful shift into agricultural employment, suggesting that legalization introduced short-term labor disruptions rather than lasting job growth. In contrast, the analysis reveals a significant rise in state tax revenue following legalization, supported by Oregon’s price-based tax model. Overall, the study concludes that while cannabis legalization can provide fiscal benefits, its broader economic impact is more limited and shaped by how legalization is implemented and managed.}},
  author       = {{Ephithite Lindholm, Fabian}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Jobs, Sectors, and Revenue: An Economic Assessment of Oregon’s Cannabis Legalization}},
  year         = {{2025}},
}