International Journal of

Business & Management Studies

ISSN 2694-1430 (Print), ISSN 2694-1449 (Online)
DOI: 10.56734/ijbms
From Prohibition to Permissibility: Analysing The Socioeconomic Dynamics of Marijuana Consumption Post-Legalization


This paper investigates the socioeconomic dynamics of marijuana consumption in the United States following legalization, using data from the National Survey on Drug Use and Health (NSDUH) spanning 2014-2020. The analysis employs fixed-effect Ordinary Least Squares (OLS) regression to explore three key stages of legalization: regulation, medical, and recreational. Results reveal a significant increase in marijuana consumption associated with recreational legalization, while medical legalization shows no statistically significant impact. Positive relationships between consumption and median income, along with negative relationships with income inequality and unemployment rates among highly educated individuals, underscore the nuanced effects of legalization. The study contributes insights for policymakers, emphasizing the need for targeted interventions, awareness campaigns, and evidence-based regulations.