STREETDRUGS UNIVERSITY

Publishers Group

This study, like those before it, has estimated worksite productivity effects in terms of lost earnings of drug and alcohol abusers. Certain data sets have been analyzed that have yielded plausible estimates about this dimension of drug and alcohol effects. However, few studies (and no rigorous studies) estimate the other costs to a worksite due to drug and alcohol abuse among the workforce. The analyses of lost earnings in fact indicate that worksites shift at least some of the productivity differential of drug- and alcohol-impaired workers to the workers themselves in the form of lower compensation. To the extent that drug and alcohol abuse cause workers to perform below the levels implied by their wages/salaries, these costs are borne by the worksites in the form of higher costs. Such costs must then be absorbed by a company through a combination of decreased profits, increased product/service prices, or reduced overall compensation for the workers. There are insufficient data to develop such estimates. Alcohol- and drug-related reductions in earnings are partially shifted to other segments of society because employers generally withhold income and other social insurance taxes and make contributions toward health insurance and social insurance on behalf of employees. Thus, workers' earnings provide a basis for estimating some of these effects. Much of the government and health insurance shares are collected (or fail to be collected, in the instance of lower earnings) through employers. These effects have been allocated to the social institutions that make the primary disbursements on drug- and alcohol-related services.

Burden on Employer

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