Creating Jobs a Drug Dealer Would Love

Job creation will not reduce drug-related violence in Mexico, El Salvador or anywhere else - at least not only. People do not become drug dealers or enroll in drug-trafficking organizations simply because they cannot find jobs but because drug trafficking is more attractive than the professional alternatives available. It is not only about the availability of jobs but also about the type of jobs available. Given labor markets and individual tastes, it may be that for some, trafficking is actually a more attractive option.

The argument that unemployment and poverty nurture trafficking is oversimplified. external pageSeveral studiescall_made have demonstrated a strong correlation between unemployment and gang membership; yet, many others have also shown that most gang members make external pagelittle if any moneycall_made. Drug dealers are not in the business for wages - at least, not solely. Engaging successfully in gangs, drug-trafficking - even murder - requires a certain character.

Of course, money matters. Drug traffickers are successfully recruited in part because of the economic prospects the business offers. As outlined in an earlier ISN Insights article, belonging to a drug trafficking organization not only provides a salary but also the opportunity to gain financially from other more lucrative forms of crime, such as extortion, kidnapping, robbery and even human trafficking.

Drug traffickers: A profile

Yet, individual preferences play an important role in the decision to join organized crime. As with the selection process for any job, when youth are deciding whether or not to become drug traffickers, they not only consider average wages but also their potential income ceiling over time - as well as how much they will enjoy the position.

external pageStudiescall_made conducted with formerly imprisoned traffickers in the US have shown that this type of criminal has a particular taste for autonomy and a strong dislike for structured employment environments, where they fall low on the hierarchical chain of command. They like entrepreneurship and actually external pagedemonstratedcall_made the highest income potential when leaving prison. More than other criminals, drug dealers open small businesses - and succeed.

It is not difficult to understand why trafficking could be an enjoyable job for someone with a taste for leadership. Drug traffickers may not make money at the beginning, and may have one of the most dangerous jobs available, but trafficking offers something that not one single low-skilled job in the manufacturing industry does: the chance, if only a small one, to become the boss. Drug traffickers dream about becoming drug lords, as McKinsey interns long to become associates. It is not about the work itself but the growth opportunities it offers.

The legal labor market for young men with little formal education does not offer opportunities with the possibility of significant advancement. The jobs available are badly paid, scarce and offer little responsibility.

Drug traffickers forgo legal routes to employment partially out of desire to wield significant power. A drug trafficker is part of a group feared by society, living above the law and enjoying the power that accompanies breaking it.

Young men would likely not be as attracted to trafficking if they remained in school long enough to acquire the skills necessary to land 'white collar' or managerial jobs. Most traffickers external pageare school dropoutscall_made. Staying in school requires a characteristic that many drug traffickers lack: patience.

Even those with educational possibilities often choose not to put in the years necessary to obtain a degree that may (or may not) result in a better job. Thus, education does not seem to offer a simple solution.

Creating policy solutions

Nevertheless, policy options to reduce the attractiveness of crime as a profession do exist, yet the problem is more complex than previously acknowledged. It is not enough to simply generate jobs or increase educational opportunities; the solution must include the creation of quality jobs that are attractive to individuals who are at risk of joining organized crime.

Promoting self-employment in micro-business may be a reasonable solution. When neither education nor the labor market offer attractive options, informal business becomes an avenue to earn an income. In countries like Mexico, where socioeconomic inequality is pronounced and obtaining 'white collar' employment is a de facto impossibility for a large share of the population, external page25.8 percent of men and 17 percent of women are self-employedcall_made.

Providing economic incentives and the skills to create informal, small businesses may actually decrease the attractiveness of drug trafficking. Research shows that drug traffickers external pageare well suitedcall_made to owning a business; they like risk and are good decision-makers. Economic incentives, such as the public provision of affordable credit, are crucial.

Drug traffickers rarely take the road to self-employment mainly for economic reasons. Unlike dealing drugs in the streets, starting a business requires an initial amount of capital. Getting the money either formally or informally is quite difficult. Formal credit from banks is practically impossible to get for people without credit history, formal jobs or both. Informal credit distributors, i.e., pawn shops, charge prohibitively high annual interest rates - sometimes up to 360 percent.

In the end, simple job creation is not going to reduce drug-related violence; we need to strengthen micro-businesses, support self-employment and provide even those without formal education attractive job opportunities.

There is a lot of business talent inside prison cells. We must ensure that this talent does not stay there.