Francesco Principe (University of Bergamo)
Mattia Filomena
This paper examines the causal impact of cannabidiol (CBD) product availability on workplace injuries, exploiting Italy’s unintended liberalization of low-THC cannabis as a natural experiment. We use a staggered difference-in-differences approach, leveraging variation in the timing of CBD retailer entries across provinces. We find that CBD availability reduces workplace injury rates by 2.5%, with larger effects among younger and prime-age workers. The analysis of mechanisms suggests that these reductions stem from improved pain management and mental health, with CBD substituting for pharmaceuticals commonly prescribed for stress, anxiety, and sleep disorders. Robustness checks confirm these findings, and placebo tests rule out confounding trends. The results highlight the unintended spillovers of cannabis liberalization, shedding light on its potential to enhance workplace safety and suggesting that policymakers should consider its broader public health and labor market implications.