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The market for mules: Risk and compensation of cross-border drug couriers

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  • Bjerk, David
  • Mason, Caleb

Abstract

This paper uses a unique dataset to examine the economics of cross-border drug smuggling. Our results reveal that loads are generally quite large (median 30kg), but with substantial variance within and across drug types. Males and females, as well as U.S. citizens and non-U.S. citizens are all well represented among mules. We also find that mule compensation is substantial (median $1313), and varies with load characteristics. Specifically, for mules caught with cocaine and meth, pay appears to be strongly correlated to expected sentence if caught, while pay appears to be primarily correlated with load size for marijuana mules, who generally smuggle much larger loads than those smuggling cocaine and meth. We argue that our results suggest that this underground labor market generally acts like a competitive labor market, where a risk-sensitive, reasonably well-informed, and relatively elastic labor force is compensated for higher risk tasks.

Suggested Citation

  • Bjerk, David & Mason, Caleb, 2014. "The market for mules: Risk and compensation of cross-border drug couriers," International Review of Law and Economics, Elsevier, vol. 39(C), pages 58-72.
    • Handle: RePEc:eee:irlaec:v:39:y:2014:i:c:p:58-72
    DOI: 10.1016/j.irle.2014.05.005
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    Cited by:

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    2. Arye L. Hillman & Ngo Long, 2022. "Immigrants as future voters," Public Choice, Springer, vol. 190(1), pages 149-174, January.

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    More about this item

    Keywords

    Drug Smuggling; Drug Mules; Illegal Markets; Compensating Wage Differentials; Sentencing Risk; Drug Markets; Border Enforcement;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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