Premium Sex: Factors Influencing the Negotiated Price of Unprotected Sex by Female Sex Workers in Mexico

Abstract

This paper examines economic, sociocultural, and behavioral risk factors that influence the compensating price difference (premium paid) between sex with and without a condom for female sex workers (FSWs) in U.S.-Mexico border cities. Field data collected in Ciudad Juarez on the price of sex with and without a condom for the same FSW respondent allowed calculation of the price premium for unprotected sex based on these paired prices, holding unobservable characteristics constant. A Tobit model was used to identify the factors determining the price premium. Key predictors of a larger price premium for sex without a condom included: length of time as a FSW; number of male clients; and participation in HIV education. Key predictors of a decrease in the price premium for unprotected sex included: age; a bad financial situation; frequent alcohol consumption before or during sex; and frequent drug use before or during sex.

Endogenous risk-taking and physical appearance of sex workers

“…The average price premia reported in the aforementioned work range from about 9 % for Kenyan sex workers in Robinson and Yeh [22] and Ecuadorian sex workers in Arunachalam and Shah [1], over 23 % in Gertler et al [10] to 30 % in De la Torre et al [8] for Mexican sex workers, to 194-376 % for Indian sex workers in Rao et al [20]. It is worth mentioning that, among those studies, the one by Rao et al [20] was the only one to be able to randomize about condom usage, and it found the largest price premium among all of them.…”

“…First, as with any other study on sex workers, data on this type of work are generally selected in the sense that census-type data on sex workers are not available. Data will not be available unless sex workers are willing to participate in a field study (as in [1,4,8,10,20,22]) or they come forward with an online posting and deliver information without knowing (as in this study and also in [7,18]). Second, as opposed to ''offline'' sex workers, ''online'' sex workers as used in this study tend to be better educated, financially less dependent, and part of the higher price segment of the market (see Cunningham and Kendall [6]).…”

“…Recent research provides evidence that a significant fraction of sexual services are provided without protection (e.g., see [1,6,8,10,20,22]), the involved parties thereby encountering a risk of genital and other diseases such as HIV. 1 Most of the literature acknowledges (directly or indirectly) that risk-taking through the offering of unprotected sex is endogenous.…”

“…1 Most of the literature acknowledges (directly or indirectly) that risk-taking through the offering of unprotected sex is endogenous. Sex workers have been found to be willing to offer sex without a condom, more likely, if a price premium was paid (see [8,10]) or the opportunity costs were high. For example, De la Torre et al [8], Robinson and Yeh [22] and Wilson [14] showed that sex workers offered such services more frequently after spells of bad financial shape, negative income shocks, or illness (and an associated loss of income).…”

“…Sex workers have been found to be willing to offer sex without a condom, more likely, if a price premium was paid (see [8,10]) or the opportunity costs were high. For example, De la Torre et al [8], Robinson and Yeh [22] and Wilson [14] showed that sex workers offered such services more frequently after spells of bad financial shape, negative income shocks, or illness (and an associated loss of income). This evidence is consistent with the larger prevalence of unprotected sex offerings in the ''offline'' (e.g., street prostitution) relative to the ''online'' (internet) market, since suppliers in the former segment of the market tend to be less educated, to charge lower prices, and to depend more on the income generated from their services than suppliers in the latter segment (see Cunningham and Kendall [6]).…”