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Pricing Personal Services: An Empirical Study of Earnings in the UK Prostitution Industry

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  • Peter G. Moffatt
  • Simon A. Peters

Abstract

The hedonic pricing method is used to investigate the way in which the prices of prostitutes' services are determined. The data used in the analysis are extracted from an internet site, each observation being based on a report submitted by a client. The factors affecting price are identified in a regression framework, and combined with other information to provide estimates of the earnings, both aggregate and individual, for a sub-sector of this underground service industry in the United Kingdom. Comparison of these earnings' estimates with data on earnings from alternative employment then allows us to estimate the compensating wage differential, and also to verify the theoretical prediction that prostitutes' earnings are positively related to earnings from alternative employment. Copyright (c) Scottish Economic Society 2004.

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Bibliographic Info

Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

Volume (Year): 51 (2004)
Issue (Month): 5 (November)
Pages: 675-690

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Handle: RePEc:bla:scotjp:v:51:y:2004:i:5:p:675-690

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Cited by:
  1. Andreas Kotsadam & Niklas Jakobsson, 2014. "Shame on you, John! Laws, stigmatization, and the demand for sex," European Journal of Law and Economics, Springer, Springer, vol. 37(3), pages 393-404, June.
  2. Adriaenssens, Stef, 2010. "'Its all supply and demand': Market fatalism and norm construction by prostitution clients in the Netherlands and Belgium," Working Papers, Hogeschool-Universiteit Brussel, Faculteit Economie en Management 2010/18, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  3. Cunningham, Scott & Kendall, Todd D., 2011. "Prostitution 2.0: The changing face of sex work," Journal of Urban Economics, Elsevier, vol. 69(3), pages 273-287, May.
  4. Niklas Jakobsson & Andreas Kotsadam, 2013. "The law and economics of international sex slavery: prostitution laws and trafficking for sexual exploitation," European Journal of Law and Economics, Springer, Springer, vol. 35(1), pages 87-107, February.
  5. Danielle E. Rabkin & Timothy K.M. Beatty, 2007. "Does VQA Certification Matter? A Hedonic Analysis," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 33(3), pages 299-314, September.
  6. Rocío Albert & Fernando Gómez & Yanna Gutierrez Franco, 2007. "Regulating Prostitution: A Comparative Law and Economics Approach," Working Papers 2007-30, FEDEA.
  7. Trevon Logan & Manisha Shah, 2009. "Face Value: Information and Signaling in an Illegal Market," NBER Working Papers 14841, National Bureau of Economic Research, Inc.
  8. Collins, Alan & Judge, Guy, 2008. "Client participation in paid sex markets under alternative regulatory regimes," International Review of Law and Economics, Elsevier, Elsevier, vol. 28(4), pages 294-301, December.
  9. Thunström, Linda, 2007. "The Marginal Willingness-to-Pay for Health Related Food Characteristics," UmeÃ¥ Economic Studies, UmeÃ¥ University, Department of Economics 724, Umeå University, Department of Economics.

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