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Does Legalized Prostitution Increase Human Trafficking?Seo-Young ChoPhilipps University Marburg - Faculty of Economics and Business Administration Axel DreherUniversity of Heidelberg Eric NeumayerLondon School of Economics and Political Science (LSE) January 16, 2012 World Development, 41 (1), 2013, pp. 67-82 Abstract: 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.
Number of Pages in PDF File: 48 Keywords: human trafficking, prostitution, human rights, globalization JEL Classification: O15, F22, K42 Accepted Paper SeriesDate posted: January 16, 2012 ; Last revised: December 10, 2012Suggested CitationContact Information
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