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Previous research found that physical appearance affects the risk-taking of sex workers through offering unprotected services. This paper utilizes a large individual-level data set covering 16,583 pay-for-sex contracts in 2011 and 2012 by 2,517 female suppliers in Germany. Results based on instrumental variables suggest that the incentive for risk-taking is about twice as high than when assuming random assignment of risk-taking.

This paper assesses determinants of habits and prices about sexual work in Germany. The paper alludes to a regional pattern, in particular, in pricing. This pattern varies with the size of cities and across as well as along the former East–West German border. In particular, the evidence suggests that there is a long shadow of the former Iron Curtain which leads to higher conditional prices in the former East than in the West, in particular, in larger agglomerations such as Berlin. Moreover, there is evidence of habit formation and spillovers within regions, which leads to regionally clustered prices as well as unsafe sex services being offered by sexworkers.

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