Living on the Edge: Youth Entry, Career and Exit in Drug-Selling Gangs

We use data from a unique survey of members of drug-trafficking gangs in favelas (slums) of Rio de

Janeiro, Brazil, to characterize drug-trafficking jobs and study the selection into gangs, analyzing what

distinguishes gang-members from other youth living in favelas. We also estimate wage regressions for

gang-members and examine their career path: age at entry, progression within the gangs’ hierarchy, and

short- to medium-term outcomes. Individuals from lower socioeconomic background and with no

religious affiliation have higher probability of joining a gang, while those with problems at school and

early use of drugs join the gang at younger ages. Wages within the gang do not depend on education, but

are increasing with experience and involvement in gang-related violence. The two-year mortality rate in

the sample of gang-members reaches 20%, with the probability of death increasing with initial

involvement in gang violence and with personality traits associated with unruliness