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Does Legalized Prostitution Increase Human Trafficking?

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  • Seo-Young Cho
  • Axel Dreher
  • Eric Neumayer

Abstract

This paper investigates the impact of legalized prostitution on human trafficking inflows. According to economic theory, there are two opposing effects of unknown magnitude. The scale effect of legalized prostitution leads to an expansion of the prostitution market, increasing human trafficking, while the substitution effect reduces demand for trafficked women as legal prostitutes are favored over trafficked ones. Our empirical analysis for a cross-section of up to 150 countries shows that the scale effect dominates the substitution effect. On average, countries where prostitution is legal experience larger reported human trafficking inflows.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.405653.de/diw_econsec0071.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Economics of Security Working Paper Series with number 71.

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Length: 46 p.
Date of creation: 2012
Date of revision:
Handle: RePEc:diw:diweos:diweos71

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Keywords: human trafficking; prostitution; legalization; scale effect; substitution effect; global;

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Legal prostitution and human trafficking
    by Economic Logician in Economic Logic on 2012-08-08 13:35:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Seo-Young Cho, 2012. "Modeling for Determinants of Human Trafficking," Ibero America Institute for Econ. Research (IAI) Discussion Papers 216, Ibero-America Institute for Economic Research.
  2. Seo-Young Cho, 2013. "Liberal Coercion? - Prostitution, Human Trafficking and Policy," MAGKS Papers on Economics 201344, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  3. Seo-Young Cho, 2012. "Integrating Equality: Globalization, Women's Rights, and Human Trafficking," Economics of Security Working Paper Series 69, DIW Berlin, German Institute for Economic Research.
  4. Niklas Potrafke, 2014. "The Evidence on Globalization," CESifo Working Paper Series 4708, CESifo Group Munich.
  5. Seo-Young Cho, 2012. "Human Trafficking, a Shadow of Migration: Evidence from Germany," Economics of Security Working Paper Series 76, DIW Berlin, German Institute for Economic Research.
  6. Diego Hernandez & Alexandra Rudolph, 2011. "Modern Day Slavery: What Drives Human Trafficking in Europe?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 97, Courant Research Centre PEG, revised 23 Nov 2011.
  7. Caruso, Raul, 2014. "What is the relationship between unemployment and rape? Evidence from a panel of European regions," MPRA Paper 54725, University Library of Munich, Germany.
  8. Hernandez, Diego & Rudolph, Alexandra, 2011. "Modern Day Slavery: What Drives Human Trafficking in Europe?," Proceedings of the German Development Economics Conference, Berlin 2011 83, Verein für Socialpolitik, Research Committee Development Economics.

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