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College applications rose in states that legalized recreational marijuana

Colleges in states where recreational marijuana became legal over the past decade saw a significant but short-term boost in applications from top-notch students. They also got more applications overall. Those were the key findings of a new study our team published recently in the peer-reviewed journal Contemporary Economic Policy.

In the year that a particular state legalized recreational marijuana, the number of applications for that state’s colleges grew by about 5.5% more than colleges in states that did not legalize. This means that colleges in legal-marijuana states received a temporary boost in applications. We didn’t detect any increase beyond the initial spike. Our results control for school quality, tuition prices and labor market conditions that may affect student application decisions.

At a more detailed level, the gains were strongest for the largest schools, which observed a nearly 54% increase in applications compared with similarly sized schools in nonlegal states. Public colleges and universities benefited more than private ones, though applications for private schools rose in states where recreational marijuana became legal as well.

In addition, schools got more applications from high-achieving students. Standardized test scores for the top 25% of applicants spiked along with the quantity of applications.

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