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Human Trafficking and Regulating Prostitution

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  • Samuel Lee
  • Petra Persson

Abstract

We study sex trafficking in a marriage market model of prostitution. When traffickers can coerce women to sell sex, trafficked prostitutes constitute a non-zero share of supply in any unregulated market for sex. We ask if regulation can eradicate trafficking and restore the equilibrium that would arise in an unregulated market without traffickers. While all existing approaches – criminalization of prostitutes (“the traditional model”), licensed prostitution (“the Dutch model”), and criminalization of johns (“the Swedish model”) – fail to accomplish this goal, we show that there exists an alternative regulatory model that does. Political support for regulation hinges on the level of gender income inequality.
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Suggested Citation

  • Samuel Lee & Petra Persson, 2012. "Human Trafficking and Regulating Prostitution," Working Papers 12-07, New York University, Leonard N. Stern School of Business, Department of Economics.
    • Handle: RePEc:ste:nystbu:12-07
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    References listed on IDEAS

    as
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    10. Jonathan Robinson & Ethan Yeh, 2012. "Risk-Coping through Sexual Networks: Evidence from Client Transfers in Kenya," Journal of Human Resources, University of Wisconsin Press, vol. 47(1), pages 107-145.
    11. Rao, Vijayendra & Gupta, Indrani & Lokshin, Michael & Jana, Smarajit, 2003. "Sex workers and the cost of safe sex: the compensating differential for condom use among Calcutta prostitutes," Journal of Development Economics, Elsevier, vol. 71(2), pages 585-603, August.
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    Citations

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    Cited by:

    1. Abel Brodeur & Warn N Lekfuangfu & Yanos Zylberberg, 2018. "War, Migration and the Origins of the Thai Sex Industry," Journal of the European Economic Association, European Economic Association, vol. 16(5), pages 1540-1576.
    2. Paul Bisschop & Stephen Kastoryano & Bas van der Klaauw, 2017. "Street Prostitution Zones and Crime," American Economic Journal: Economic Policy, American Economic Association, vol. 9(4), pages 28-63, November.
    3. John N. Mordeson & Michel Mallenby & Sunil Mathew & Santanu Acharjee, 2017. "Human Trafficking: Policy Intervention," New Mathematics and Natural Computation (NMNC), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 341-358, November.
    4. Philippe Adair & Oksana Nezhyvenko, 2016. "Sex Work Vs. Sexual Exploitation: Assessing Guesstimates For Prostitution In The European Union," Post-Print hal-01672874, HAL.
    5. Jakobsson, Niklas & Kotsadam, Andreas, 2015. "The Economics of Trafficking for Sexual Exploitation," Memorandum 07/2015, Oslo University, Department of Economics.

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    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J47 - Labor and Demographic Economics - - Particular Labor Markets - - - Coercive Labor Markets
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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