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Transnational Trafficking, Law Enforcement and Victim Protection: A Middleman Trafficker's Perspective

  • Akee, Randall K. Q.

    ()

    (University of California, Los Angeles)

  • Bedi, Arjun S.

    ()

    (ISS, Erasmus University Rotterdam)

  • Basu, Arnab K.

    ()

    (Cornell University)

  • Chau, Nancy

    ()

    (Cornell University)

We explore three hitherto poorly understood characteristics of the human trafficking market – the cross-border ease of mobility of traffickers, the relative bargaining strength of traffickers and final buyers, and the elasticity of buyers' demand. In a model of two-way bargaining, the exact configuration of these characteristics is shown to determine whether domestic and foreign crackdowns on illicit employment mutually reinforce or counteract one another in efforts to stem the tide of trafficking. Estimation results from a gravity model of trafficking present evidence consistent with the mutual reinforcement view, indicating considerable ease of mobility, partial bargaining power, and inelastic demand.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6226.

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Length: 47 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:iza:izadps:dp6226
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  1. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-29, October.
  2. Toman Omar Mahmoud & Christoph Trebesch, 2009. "The Economic Drivers of Human Trafficking: Micro-Evidence from Five Eastern European Countries," Kiel Working Papers 1480, Kiel Institute for the World Economy.
  3. Sylvain Dessy & Stéphane Pallage, 2003. "The Economics of Child Trafficking," Cahiers de recherche 0323, CIRPEE.
  4. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
  5. Friebel, Guido & Guriev, Sergei, 2004. "Smuggling Humans: A Theory of Debt-Financed Migration," CEPR Discussion Papers 4305, C.E.P.R. Discussion Papers.
  6. Ben-Bassat, Avi & Dahan, Momi, 2008. "Social rights in the constitution and in practice," Journal of Comparative Economics, Elsevier, vol. 36(1), pages 103-119, March.
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