IDEAS home Printed from https://ideas.repec.org/a/eee/poleco/v38y2015icp118-139.html
   My bibliography  Save this article

Modern day slavery: What drives human trafficking in Europe?

Author

Listed:
  • Hernandez, Diego
  • Rudolph, Alexandra

Abstract

This paper examines the determinants of human trafficking victim inflows into European countries based on identified victim numbers. We use a gravity-type model to acknowledge data reporting shortcomings. Our empirical results suggest that human trafficking occurs within well-established migrant and refugee corridors and that victims are more likely to be exploited in host countries with weak institutions. Legislation on prostitution activities does not influence victim inflows. Liberalization of border controls intensifies trafficking flows. We find no effect of host countries' acceptance rates of asylum seekers. We conclude that effective policies against human trafficking require sound institutions and a focus on the entire trafficking-chain/channel from source to host countries.

Suggested Citation

  • Hernandez, Diego & Rudolph, Alexandra, 2015. "Modern day slavery: What drives human trafficking in Europe?," European Journal of Political Economy, Elsevier, vol. 38(C), pages 118-139.
  • Handle: RePEc:eee:poleco:v:38:y:2015:i:c:p:118-139
    DOI: 10.1016/j.ejpoleco.2015.02.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0176268015000075
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejpoleco.2015.02.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dreher, Axel & Kotsogiannis, Christos & McCorriston, Steve, 2007. "Corruption around the world: Evidence from a structural model," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 443-466, September.
    2. Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio & Wacziarg, Romain, 2003. "Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-194, June.
    3. Guido Friebel & Sergei Guriev, 2006. "Smuggling Humans: A Theory of Debt-financed Migration," Journal of the European Economic Association, MIT Press, vol. 4(6), pages 1085-1111, December.
    4. Rotte, Ralph & Vogler, Michael, 1998. "Determinants of International Migration: Empirical Evidence for Migration from Developing Countries to Germany," CEPR Discussion Papers 1920, C.E.P.R. Discussion Papers.
    5. Martin Gassebner & Alexander Keck & Robert Teh, 2010. "Shaken, Not Stirred: The Impact of Disasters on International Trade," Review of International Economics, Wiley Blackwell, vol. 18(2), pages 351-368, May.
    6. Gathmann, Christina, 2008. "Effects of enforcement on illegal markets: Evidence from migrant smuggling along the southwestern border," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 1926-1941, October.
    7. Simon Johnson & Daniel Kaufman & Andrei Shleifer, 1997. "The Unofficial Economy in Transition," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 159-240.
    8. repec:ilo:ilowps:376750 is not listed on IDEAS
    9. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    10. Friedrich Schneider, 2005. "Shadow Economies of 145 Countries all over the World: What Do We Really Know?," CREMA Working Paper Series 2005-13, Center for Research in Economics, Management and the Arts (CREMA).
    11. Cooray, Arusha & Potrafke, Niklas, 2011. "Gender inequality in education: Political institutions or culture and religion?," European Journal of Political Economy, Elsevier, vol. 27(2), pages 268-280, June.
    12. Schneider, Friedrich, 2005. "Shadow economies around the world: what do we really know?," European Journal of Political Economy, Elsevier, vol. 21(3), pages 598-642, September.
    13. D’Hernoncourt, Johanna & Méon, Pierre-Guillaume, 2012. "The not so dark side of trust: Does trust increase the size of the shadow economy?," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 97-121.
    14. Friedrich Schneider, 2009. "Size and Development of the Shadow Economy in Germany, Austria and Other oecd-Countries. Some Preliminary Findings," Revue économique, Presses de Sciences-Po, vol. 60(5), pages 1079-1116.
    15. Everett Lee, 1966. "A theory of migration," Demography, Springer;Population Association of America (PAA), vol. 3(1), pages 47-57, March.
    16. Friedrich Schneider & Dominik Enste, 1999. "Shadow Economies Around the World - Size, Causes, and Consequences," CESifo Working Paper Series 196, CESifo.
    17. De Giorgi, Giacomo & Pellizzari, Michele, 2009. "Welfare migration in Europe," Labour Economics, Elsevier, vol. 16(4), pages 353-363, August.
    18. Niklas Potrafke, 2016. "Policies against human trafficking: the role of religion and political institutions," Economics of Governance, Springer, vol. 17(4), pages 353-386, November.
    19. Anzelika Zaiceva & Klaus F. Zimmermann, 2008. "Scale, diversity, and determinants of labour migration in Europe," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 428-452, Autumn.
    20. Nathan Nunn & Leonard Wantchekon, 2011. "The Slave Trade and the Origins of Mistrust in Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3221-3252, December.
    21. Loayza, Norman V., 1996. "The economics of the informal sector: a simple model and some empirical evidence from Latin America," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 45(1), pages 129-162, December.
    22. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    23. Friedrich Schneider & Andreas Buehn & Claudio Montenegro, 2010. "New Estimates for the Shadow Economies all over the World," International Economic Journal, Taylor & Francis Journals, vol. 24(4), pages 443-461.
    24. Seo-Young Cho, 2015. "Modeling for Determinants of Human Trafficking: An Empirical Analysis," Social Inclusion, Cogitatio Press, vol. 3(1), pages 2-21.
    25. Martin Gassebner & Pierre-Guillaume Méon, 2010. "Where do Creditor Rights Matter? Creditor Rights, Political Constraints, and Cross-Border M&A Activity," Working Papers CEB 10-019.RS, ULB -- Universite Libre de Bruxelles.
    26. Jean, Sébastien & Jiménez, Miguel, 2011. "The unemployment impact of immigration in OECD countries," European Journal of Political Economy, Elsevier, vol. 27(2), pages 241-256, June.
    27. Omar Mahmoud, Toman & Trebesch, Christoph, 2009. "The economic drivers of human trafficking: micro-evidence from five Eastern European countries," Kiel Working Papers 1480, Kiel Institute for the World Economy (IfW).
    28. Soares, Rodrigo R., 2004. "Development, crime and punishment: accounting for the international differences in crime rates," Journal of Development Economics, Elsevier, vol. 73(1), pages 155-184, February.
    29. 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, vol. 35(1), pages 87-107, February.
    30. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
    31. Randall Akee & Arnab K. Basu & Arjun Bedi & Nancy H. Chau, 2014. "Transnational Trafficking, Law Enforcement, and Victim Protection: A Middleman Trafficker's Perspective," Journal of Law and Economics, University of Chicago Press, vol. 57(2), pages 349-386.
    32. Cho, Seo-Young & Dreher, Axel & Neumayer, Eric, 2013. "Does Legalized Prostitution Increase Human Trafficking?," World Development, Elsevier, vol. 41(C), pages 67-82.
    33. O'Connell, Michael, 2011. "How do high-skilled natives view high-skilled immigrants? A test of trade theory predictions," European Journal of Political Economy, Elsevier, vol. 27(2), pages 230-240, June.
    34. Akee, Randall K. Q. & Basu, Arnab K. & Chau, Nancy H. & Khamis, Melanie, 2010. "Ethnic Fragmentation, Conflict, Displaced Persons and Human Trafficking: An Empirical Analysis," IZA Discussion Papers 5142, Institute of Labor Economics (IZA).
    35. Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
    36. Friedman, Eric & Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 2000. "Dodging the grabbing hand: the determinants of unofficial activity in 69 countries," Journal of Public Economics, Elsevier, vol. 76(3), pages 459-493, June.
    37. Belser, Patrick., 2005. "Forced labour and human trafficking : estimating the profits," ILO Working Papers 993767503402676, International Labour Organization.
    38. Bergh, Andreas & Bjørnskov, Christian, 2013. "Trust, Welfare States and Income Equality: What Causes What?," Working Paper Series 994, Research Institute of Industrial Economics.
    39. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-553, September.
    40. J. Scott Long & Jeremy Freese, 2006. "Regression Models for Categorical Dependent Variables using Stata, 2nd Edition," Stata Press books, StataCorp LP, edition 2, number long2, March.
    41. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    42. Oded Stark, 1991. "The Migration of Labor," Blackwell Books, Wiley Blackwell, number 1557860300, October.
    43. repec:hrv:faseco:30728045 is not listed on IDEAS
    44. David Karemera & Victor Iwuagwu Oguledo & Bobby Davis, 2000. "A gravity model analysis of international migration to North America," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1745-1755.
    45. World Bank, 2010. "World Development Indicators 2010," World Bank Publications - Books, The World Bank Group, number 4373.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sonnabend, Hendrik, 2015. "Good Intentions and Unintended Evil? Clients’ Punishment in the Market for Sex Services with Voluntary and Involuntary Providers," EconStor Preprints 110682, ZBW - Leibniz Information Centre for Economics.
    2. Rauscher, Michael & Willert, Bianca, 2020. "Modern slavery, corruption, and hysteresis," European Journal of Political Economy, Elsevier, vol. 64(C).
    3. Silvia Angeloni & Francesco Maria Spano, 2018. "Asylum Seekers in Europe: Issues and Solutions," Journal of International Migration and Integration, Springer, vol. 19(2), pages 473-495, May.
    4. Oasis Kodila-Tedika & Martin Mulunda Kabange, 2016. "Slave trade and Human Trafficking," Research Africa Network Working Papers 16/002, Research Africa Network (RAN).
    5. Magris, Francesco & Russo, Giuseppe, 2016. "Fiscal Revenues and Commitment in Immigration Amnesties," European Journal of Political Economy, Elsevier, vol. 42(C), pages 75-90.
    6. Robert G Blanton & Shannon Lindsey Blanton & Dursun Peksen, 2020. "Confronting human trafficking: The role of state capacity," Conflict Management and Peace Science, Peace Science Society (International), vol. 37(4), pages 471-489, July.
    7. Sonnabend, Hendrik & Stadtmann, Georg, 2018. "Good intentions and unintended evil? Adverse effects of criminalizing clients in paid sex markets with voluntary and involuntary prostitution," Discussion Papers 400, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    8. Michael Rauscher & Bianca Willert, 2019. "Slavery, Corruption, and Institutions," CESifo Working Paper Series 7944, CESifo.
    9. Rauscher, Michael & Willert, Bianca, 2019. "Slavery, corruption, and institutions," Thuenen-Series of Applied Economic Theory 164, University of Rostock, Institute of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Axel Dreher & Friedrich Schneider, 2010. "Corruption and the shadow economy: an empirical analysis," Public Choice, Springer, vol. 144(1), pages 215-238, July.
    3. Feige, Edgar L., 2015. "Reflections on the meaning and measurement of Unobserved Economies: What do we really know about the “Shadow Economy”?," MPRA Paper 68466, University Library of Munich, Germany.
    4. Axel Dreher & Pierre-Guillaume Méon & Friedrich Schneider, 2014. "The devil is in the shadow: Do institutions affect income and productivity or only official income and official productivity?," Post-Print CEB, ULB -- Universite Libre de Bruxelles, vol. 158(1-2), pages 121-141, January.
    5. Oksana Nezhyvenko, 2018. "Informal Employment in Ukraine and European Union Transition Countries," Erudite Ph.D Dissertations, Erudite, number ph18-03 edited by Philippe Adair, October.
    6. Afonso, Oscar & Neves, Pedro Cunha & Pinto, Tiago, 2020. "The non-observed economy and economic growth: A meta-analysis," Economic Systems, Elsevier, vol. 44(1).
    7. Psychoyios, Dimitrios & Missiou, Olympia & Dergiades, Theologos, 2021. "Energy based estimation of the shadow economy: The role of governance quality," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 797-808.
    8. Mazhar, Ummad & Méon, Pierre-Guillaume, 2017. "Taxing the unobservable: The impact of the shadow economy on inflation and taxation," World Development, Elsevier, vol. 90(C), pages 89-103.
    9. Andreas Buehn & Friedrich Schneider, 2012. "Corruption and the shadow economy: like oil and vinegar, like water and fire?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(1), pages 172-194, February.
    10. D’Hernoncourt, Johanna & Méon, Pierre-Guillaume, 2012. "The not so dark side of trust: Does trust increase the size of the shadow economy?," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 97-121.
    11. Thomas Steinwachs, 2019. "Eine Frage der Geographie: Räumliche Dimensionen von Handel, Migration und Wachstum," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 81, November.
    12. Khurrum S. Mughal & Friedrich G. Schneider & Zafar Hayat, 2020. "Intensity of Regulations as a Cause of the Informal Sector," Journal of South Asian Development, , vol. 15(2), pages 135-154, August.
    13. Friedrich Schneider, 2014. "In the Shadow of the State – The Informal Economy and Informal Economy Labor Force," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 227-248, December.
    14. Willert, Bianca, 2021. "Modern Slavery – An Empirical Analysis," Thuenen-Series of Applied Economic Theory 167, University of Rostock, Institute of Economics.
    15. 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.
    16. Niklas Potrafke, 2016. "Policies against human trafficking: the role of religion and political institutions," Economics of Governance, Springer, vol. 17(4), pages 353-386, November.
    17. Luisanna Onnis & Patrizio Tirelli, 2015. "Shadow economy: Does it matter for money velocity?," Empirical Economics, Springer, vol. 49(3), pages 839-858, November.
    18. Afonso, Oscar, 2012. "The impact of public goods and services and public R&D on the non-observed economy size, wages inequality and growth," Economic Modelling, Elsevier, vol. 29(5), pages 1996-2004.
    19. Goel, Rajeev K. & Saunoris, James W. & Schneider, Friedrich, 2019. "Drivers of the underground economy for over a century: A long term look for the United States," The Quarterly Review of Economics and Finance, Elsevier, vol. 71(C), pages 95-106.
    20. Cho, Seo-Young & Dreher, Axel & Neumayer, Eric, 2013. "Does Legalized Prostitution Increase Human Trafficking?," World Development, Elsevier, vol. 41(C), pages 67-82.

    More about this item

    Keywords

    Human trafficking; Gravity model; Illegal migration; International organized crime;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:38:y:2015:i:c:p:118-139. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/inca/505544 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505544 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.