Elsevier

World Development

Volume 41, January 2013, Pages 67-82
World Development

Does Legalized Prostitution Increase Human Trafficking?

https://doi.org/10.1016/j.worlddev.2012.05.023Get rights and content

Summary

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.

Key words

human trafficking
prostitution
crime
scale effect
substitution effect
global

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