RT Journal Article
SR Electronic
T1 Compensated for Life
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 345
OP 369
DO 10.3368/jhr.48.2.345
VO 48
IS 2
A1 Raj Arunachalam
A1 Manisha Shah
YR 2013
UL http://jhr.uwpress.org/content/48/2/345.abstract
AB 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.