Drug Dealing and Legitimate Self-Employment

A-Tier
Journal: Journal of Labor Economics
Year: 2002
Volume: 20
Issue: 3
Pages: 538-567

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Theoretical models of self-employment posit that attitudes toward risk, entrepreneurial ability, and preferences for autonomy are central to the individual's decision between self-employment and wage/salary work. I provide indirect evidence on this hypothesis by examining the relationship between drug dealing as a youth and legitimate self-employment in later years using data from the National Longitudinal Survey of Youth. I find that drug dealers are 11%21% more likely to choose self-employment than non-drug-dealers, all else equal. After ruling out a few alternative explanations, I interpret these results as providing indirect evidence supporting the hypothesis.

Technical Details

RePEc Handle
repec:ucp:jlabec:v:20:y:2002:i:3:p:538-567
Journal Field
Labor
Author Count
1
Added to Database
2026-01-25