Motivated by survey evidence, we examine the relation between worker substance abuse and workplace fraud. In our sample of medical doctors, nearly 10% of all frauds occur in the 0.01% of worker-years when the doctor receives a professional sanction for substance abuse. Doctors receiving such...

We examine the relation between worker substance abuse and workplace fraud in a sample of medical doctors. Relative to their peers, we observe that doctors engaging in substance abuse are between 50 and 100 times more likely to commit fraud in a given year. This result is consistent with...