Does legalized prostitution increase human trafficking?

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, whi...

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Main Authors: Cho, Seo-Young (Author) , Dreher, Axel (Author) , Neumayer, Eric (Author)
Format: Article (Journal)
Language:English
Published: 2013
In: World development
Year: 2012, Volume: 41, Pages: 67-82
ISSN:1873-5991
DOI:10.1016/j.worlddev.2012.05.023
Online Access:Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.worlddev.2012.05.023
Verlag, lizenzpflichtig, Volltext: https://www.sciencedirect.com/science/article/pii/S0305750X12001453
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Author Notes:Seo-Young Cho, Axel Dreher and Eric Neumayer

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520 |a 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. 
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