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We estimate the direct and spillover effects of cannabis legalization on
longstanding racial disparities in criminal justice outcomes. We find
that legalization reduces cannabis possession and sales arrests forWhite
and Black populations, narrowing but not eliminating disparities. We
also find spillover increases in hospitalizations involving cannabis and
other illegal drugs. However, spillovers on arrests, incarcerations, and
crimes involving serious violent or property offenses are insignificant
or even decrease. Other illegal drug sales arrests decrease across pop-
ulations, while illegal drug incarcerations decrease only among White
populations. Spillovers on other low-level offenses are insignificant for
White but mixed for Black populations.
