Economics of Sex Work: Evidence from Thailand

Abstract

Sex work is an illegal profession in many countries, yet past qualitative studies suggested that sex work could be an important source of income for women in developing countries. Financial distress could be a motivator for poor women to supply labor in the commercial sex industry. In this study, we analyze how financial distress affects single and married women differently and how it, in turn, affects their labor supply in sex work and demanded price per transaction. Using the United Nations Population Fund (UNFPA)’s survey of 815 sex workers in Thailand in 2007, we find evidence that women’s labor supply in sex work increases whereas price per sexual transaction decreases with financial distress. We also find that married sex workers face more financial distress than single sex workers, and that married sex workers supply more labor in sex work even after controlling for the financial distress channel.