Do Sex Workers Respond to Disease? Evidence from the Male Market for Sex

Manisha Shah ()

American Economic Review, 2013, vol. 103, issue 3, 445-50

Abstract: Sex markets play a key role in the transmission of sexually transmitted infections (STI) and HIV/AIDS in developing countries. While individuals should substitute away from risky sex as STI prevalence rises, female sex workers draw a premium for engaging in unprotected sex, mitigating their propensity to use condoms. We provide the first evidence of a positive premium for non-condom sex in developing country male sex markets. Testing whether this is a compensating differential for disease risk, we find that a one percentage point increase in the STI rate increases the premium 28 percent. Market forces may curb the self-limiting effect of STI epidemics.

JEL-codes: I12 J16 O15 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/aer.103.3.445
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Citations: View citations in EconPapers (13)

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