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Human Trafficking and Regulating Prostitution

Author

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  • Samuel Lee
  • Petra Persson

Abstract

Certain markets are illicit because part of the supply is coerced, but little is known about the optimal regulation of such markets. We model a prostitution market with voluntary and coerced prostitutes and ask what regulation can restore the benchmark outcome that would arise under laissez-faire absent coercion. Whereas current policies—decriminalization, criminalization of the buy or sell sides, and licensing—are ineffective against trafficking or harm voluntary suppliers, we show that an alternative policy can restore the benchmark outcome. Our results are relevant to the ongoing debate about decriminalizing prostitution and provide guidance for empirical work on prostitution regulation.

Suggested Citation

  • Samuel Lee & Petra Persson, 2022. "Human Trafficking and Regulating Prostitution," American Economic Journal: Economic Policy, American Economic Association, vol. 14(3), pages 87-127, August.
    • Handle: RePEc:aea:aejpol:v:14:y:2022:i:3:p:87-127
    DOI: 10.1257/pol.20180622
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    Citations

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    Cited by:

    1. Perrotta Berlin, Maria & Latour, Chiara & Spagnolo, Giancarlo, 2023. "International Spillovers from Prostitution Regulation: The "Nordic Model" and Sex Tourism," SITE Working Paper Series 63, Stockholm School of Economics, Stockholm Institute of Transition Economics, revised 25 Sep 2023.
    2. Rhianne Fiolka & Zack Marshall & Anna Kramer, 2022. "Banishment through Branding: From Montréal’s Red Light District to Quartier des Spectacles," Social Sciences, MDPI, vol. 11(9), pages 1-20, September.
    3. Rescar Chauke & Puleng Motlalekgosi & Jacob Mofokeng, 2022. "Exploring police methods and challenges of identifying human trafficking activities in the City of Tshwane Metropolitan Municipality, South Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(9), pages 250-264, December.

    More about this item

    JEL classification:

    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing
    • J47 - Labor and Demographic Economics - - Particular Labor Markets - - - Coercive Labor Markets
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • K38 - Law and Economics - - Other Substantive Areas of Law - - - Human Rights Law; Gender Law; Animal Rights Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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