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Compensated for Life: Sex Work and Disease Risk
- Journal of Human Resources
- University of Wisconsin Press
- Volume 48, Number 2, Spring 2013
- pp. 345-369
- 10.1353/jhr.2013.0015
- Article
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Sex workers draw a premium for engaging in unprotected sex. We theoretically motivate a test of whether this premium represents a compensating differential for disease, thereby mitigating sex workers' propensity to use condoms. Using transaction-level data and biological STI markers from sex workers in Ecuador, we exploit within-worker variation across local disease environments. We find that locations with low disease prevalence exhibit a very low, insignificant premium for unprotected sex. A one percentage point increase in the local disease rate increases the premium for noncondom sex by 33 percent. Market forces may curb the self-limiting nature of STI epidemics.