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The economics of prostitution and marriage

May 10, 2006

You know, I was going to try and go to bed at a reasonable hour tonight, skip out on doing some writing, and head straight for my toy box and my porn “research,” but then I was clicking my way through my daily blogstops, and I saw this article that Violet Blue linked to on the economics of income from prostitution versus the propensity to marry. It’s an interesting attempt at the rationale behind the motives for prostitution and to puzzle out the answer to the question “why do prostitutes make so much damn money?” And I of course cannot resist the temptation to pick it apart. At this point I’ve only had energy to read the 3 page ABC News piece, and not the 35 page economics paper it is about – I’ll get to that when I’m not half dead with tiredness and shit-sick of reading academic papers.

First of all, the article (and the study it is about, I presume) makes the basic mistake that most media about sex work makes – the assumption that sex workers as a whole are of a particular class that is fairly uniform. Basically, this means that the population being written about isn’t identified in terms of where they exist in the spectrum of sex work possibilities and income level. In the ABC News piece, the workers being written about seem to be mid-level escorts or call girls, but this is never pointed out – the group of workers is just referred to as “prostitutes.” Though there is brief mention of the ugly side of non-consensual sex trafficking, there is no real discussion of the difference between what has been termed recreational and survival sex work. Survival sex work is sex work in which workers face multiple vulnerabilities including violence, entrenched poverty, and sexual and drug related harms. Survival sex workers are often street workers, who are much-maligned by the press and the law. Recreational sex workers are sex workers who evaluate their options for employment and then freely choose sex work – the workers written about in this piece are recreational sex workers. Though this becomes obvious in the discussion in the piece around marriage, these differences within the industry are never spelled out. In order to do and present research on sex workers that is well-considered, definition of terms is essential. Okay, semantics and methodology rant over. Onto the deconstruction (mmmm, deconstruction).

[Authors Edlund and Korn] document that in diverse cultures and over many centuries, prostitutes have indeed made much more, sometimes several multiples more, than comparably (un)skilled women would make in more prosaic occupations.

If this is true, is it any wonder why it is difficult for women to transition out of the sex industry and into a more prosaic (read: unskilled, minimum wage) job? For those not in the know, the class of sex workers that is being written about here is the sort of middle class escort whose rates are generally roughly equivalent to the hourly rate of a lawyer, which depending on location, is probably in the range of $150-300 an hour. However, despite the high hourly rate, it is worth pointing out that sex workers do spend a lot of time outside each hour-long appointment making appointments, advertising, responding to inquiries, doing preparation, traveling, et cetera. Non-billable time, but time spent working nonetheless. So, yes many escorts make a good chunk of money in an hour, but they are not making this by the hour for a 40 hour week. Also, sex workers often exaggerate the amount of money they are making – well, except to the IRS.

So, why do prostitutes make so much damn money? It’s a good question.

…Edlund and Korn argue that the primary reason for the income differential is not the risk sometimes associated with the practice of prostitution but rather that prostitutes greatly diminish their chances for marriage by virtue of their occupation. Men generally don’t want to marry (ex)prostitutes, and so women must be relatively well-compensated in order to forgo the opportunity to marry.

First of all, I say – ouch. Yes, it is likely true that it is a rare man open to the possibility of marrying an ex-prostitute. However, it is possible that not all prostitutes (or even all people, because - gasp - prostitutes are people) strive to marry. How about that? Also, I would bet that most prostitutes are not honest with potential mates about their sex work backgrounds – just as many people aren’t honest about their sexual histories with their partners. The thing is, prostitutes don’t wear big scarlet letters on them or anything, so unless an ex-prostitute admits to her background in the industry, the mere fact that she was a prostitute doesn’t decrease the likelihood that she will marry. Also, most women who enter the sex industry are fairly young when doing so and are profit-motivated. It’s pretty unlikely to assume that young women make this calculation of trading marriage (if they are indeed doing so) for high income in a stigmatized profession. I am making an assumption here, but I believe that most sex workers entering the profession are probably much more short-sighted than this.

Wives and prostitutes are competing “commodities” (in the reductionist view of economists, that is), but wives are distinctly superior in that they can produce children that are socially recognized as coming from the father.

No. Just no. Wives and prostitutes offer different things – I’m not getting all madonna whore complex on you here, either. Wives can produce legitimate children, but they can and do also have sex with their husbands. Prostitutes offer no strings attached sex – which is not to say that they are disposable, but that a man can escape his life for an hour long fantasy vacation with a prostitute. Also, there’s the whole thing where married men frequent prostitutes – how does this affirm the superiority of wives? The comparison here is just unfair because men seek out wives and prostitutes for different reasons, which means that they are not in direct competition with one another, especially because men often want to have both.

At the very end of the article, there are two concluding paragraphs titled “bottom line,” which includes a sentence I wholeheartedly agree with: “Most women enter prostitution for the money.” But then when you boil it down to that, isn’t that the reason any person enters any kind of work?

So those are some scattered and immediate thoughts on this. More perhaps when I’ve read the 35 page version.

Posted by Dacia at May 10, 2006 01:18 AM

Comments

i want to marry someone. i don’t have boyfriends.

r2_jane@yahoo.co.jp

Posted by: jane at May 10, 2006 03:27 AM

The nice thing about writing about the sex trade is you can make up whatever number you like to support whatever position you wish to assert, and the more ourtrageous the numbers, the more eagerly the press will jump on it. Even better, unlike Ponds and Fleishman, no one will ever check your data! It’s a win/win situation for everyone! :-)

Posted by: Tony Comstock at May 10, 2006 11:19 AM

Strange article … I thought the high price was just supply-and-demand?

Posted by: amy at May 10, 2006 12:05 PM

Thanks for an illuminating post. One real problem in recent feminist writing on the subject is, I think, a refusal to acknowledge complexities - to homogenise sex workers as you describe.

Posted by: Winter at May 11, 2006 03:18 PM

The question that seems to be missed by studies such as these is why when there are jobs available do women choose prostitution? Another annoying habit is not including male prostitution in these studies.

Posted by: bat at May 11, 2006 05:26 PM

A very well-written and thoughtful decontruction. I have not read the original paper either, but I do hope the ABC report found the juicy bits and quoted them out of context. If the authors really believe that “wives” and “prostitutes” are in competition, then they have no conception of the role played by prostitutes in most cultures. That is, “wives” and sex workers tend to co-exist. You put it best, Vixen when you point out that (many?)men visit prostitutes for a “fantasy vacation”. They are prepared to pay high prices because totally NSA, time-limited, obligation-free and anonymous sex is an extremely rare commodity. And that is all there is to it.

Posted by: Aunty Agony at May 11, 2006 11:14 PM

the reason they never use prime examples of sex workers is that they need them to be whores

if they showed it as a respecable option to persue then their entire structure of control through morality would waver as they saw their wives and daughters taking up the trade

it’s amazing what closed minds can belive

Posted by: exile at May 11, 2006 11:48 PM

References: In-Reply-To: Content-Type: text/plain; charset=windows-1252; format=flowed Content-Transfer-Encoding: 8bit X-UIDL: “$-!!ebI”!B,2”!\<P!!

Actually…. I think you completely miss the point of Paulos’ ABC article. Further, the original paper is rather wonderful and though the premises are simplified, and admittedly absurdly so (these are called “stylized facts” in the business), the conclusions stem logically (and mathematically correctly) from the assumptions. If you had read it and understood it, you’d probably be amused and likely in general agreement, and instead of going to the gym angry, actually appreciate Paulos’ article. One must apply the traditional admonition so commonly warranted by articles released without the benefit of an editor: RTFA. If you did your brain wouldn’t be doing that rubber band thing you find so troubling.

First, the Paulos (ABC) article summarizes the original paper accurately while fairly pointing out the (few) unacknowledged flaws in the original article: specifically citing sampling problems with prostitutes that have been busted and failing to consider abusive or problematic marriages which impose costs on the wife not considered by the article, which may be substantive enough to alter the conclusions, or require additional balancing considerations otherwise ignored.

That Paulos is a review of Edlund and Korn makes a review of Paulos an absence of fully understanding the Edlund and Korn article a mere ad hominem attack. If you read the paper, you will find Paulos gives an accurate and reasonable summary and by necessity does not delve into every detail the article presents. Your criticisms of the summary, and more so when applied to the article, are entirely false.

Neither Paulos nor Edlund and Korn make the mistake of assuming all prostitutes fall into the same socio-economic class. The paper considers the simple case where incomes for prostitution are homogeneous and where they are heterogeneous, and likewise makes the same assumptions for male incomes and for women’s incomes, and finally adds to the model “housewives.” The economic distributions they make for the incomes of prostitutes are derived from 13 cited studies (of 58 references) including mid-15th century France, 1934 Japan, 1947-72 Germany, 1973 Nevada, early 1980’s Thailand, 1981 Munich, 1990-91 Los Angeles, 1993 Montreal, mid-1990’s Indonesia, 1995 Barcelona, 1997 German, 1997 Brazil, and late 1990’s Malaysia. The article describes the market structure as:

“At the bottom we find street prostitution, followed by brothels, bars and clubs. Call girls and escort agencies occupy the middle to high slots, and kept women the top rungs.”

Paulos briefly mentions and Edlund and Korn go into some detail regarding the “ugly side.” It would seem that Ray might take issue with the characterization of section 4.4 of the paper, titled “Voluntary?” but the paper certainly address the issue. The conclusion of the authors is that there is no question of victimization: “[i]n times and places where forced labor has been used, prostitution was no exception.” But the authors suggest that “Poor conditions or riskiness are by themselves not sufficient to establish bondage or slavery as the alternative could be worse.” That is, the authors do not support the concept of “economic slavery” as such, acknowledging that “economic realities seem to play into how willingly women are thus victimized,” but this is not slavery - it is a rational choice in confronting a difficult situation. Sex workers are not mindless victims.

The workers written about in both the ABC article and the paper are in no way “recreational sex workers,” indeed that concept is only briefly acknowledged as being largely irrelevant to the economic theory they are deriving. They admit that such dismissal of “recreational sex workers” undermines the validity of the theory to the extant that some women might find economic value in the pleasure of the occupation of being a prostitute, rather it is a common but false assumption that women “abhor sex” (and also the equally problematic assumption that “women were suspected of being overly sexual and willing adulteresses.”)

One of the worst examples of how embarrassing it can be to not RTFA before expounding on a misinterpretation of it is the argument that the authors failed to do their homework on income levels. Aside from the summary of sources used as reference, to support the contention that prostitution as a profession commands some premium over other employment available to women of similar qualifications, the article specifically cites in section 2.3 Pay, the following “For a probability sample of 1,024 female street prostitutes in LA interviewed in 1990 and 1991, the annual average total earnings were USD 23,845 for prostitutes, while working women averaged USD 20,197 and female service workers only USD 17,192.” The article backs this assertion up with data from Montreal, Indonesia, and Malaysia. If one had residual doubt as to the validity of the assumption, one can review the 13 references cited in table 1.

As to the argument that the article is remiss in positing that ex-prostitutes cannot marry, it is not. The entire point of the economic argument is predicated on the assumption specifically spelled out as such by both the article and the ABC review that prostitutes cannot marry and married women are not prostitutes. The degree to which that assumption is valid is specially addressed in 4.5 Wife and prostitute? The authors state, and Ray backs up, that “It is a fair guess that to the extent former prostitutes marry, on average they do so on worse terms than they would have had in the absence of their past.” That is, having been a prostitute is a liability in the marriage market. You might find some men who love it, some who don’t care, but on average it is a liability. That Ray argues that young women may fail to make the calculation they are trading marriage for high income is utterly irrelevant to the economic argument presented, as even a cursory read of the article would reveal.

Ray’s dismissal of the competing commodities argument is also an embarrassing admission of a failure to RTFA. The article does get all Madonna-whore: “The prostitute serves men in a way that would be scandalous if done by a wife. The Madonna ­ Whore dichotomy may have risen from the need to keep the two separate. Consistent with the premise of this paper, the wife was pigeon-holed at the high end of the social spectrum, and the harlot at respectable distance.” The article goes into great detail about the comparative services of the prostitute and wife, how both have value and why, and what it means. The stylized fact is not about the mutually exclusive condition of men, rather the stylized fact is to create a mutually exclusive choice for women. It is merely essential to the premise that the woman choose to be a prostitute or a wife (though footnote 27 admits “The alternative formulation that women choose neither, but are sold into either marriage or prostitution, would also work.”)

As for ignoring homosexual prostitution, the article does not, nor does it ignore Blue’s “renting a stud.” Male stud services are not economically relevant to the model being developed. Again, a quick RTFA will make the reasons clear. Directly addressing homosexual prostitution the authors state: “Females outnumber males as sellers, but that is not the primary reason we do not discuss homosexual prostitution. The premise of this paper is that female heterosexual prostitution is conditioned by the following realities of reproduction: fecund women are scarce; a child has by default only one known parent ­ the mother; and marriage gives a man parental rights to the children borne by his wife.”

The lesson: never, ever launch into a diatribe without at least first reading the article. You might find valid mistakes when you do, and have plenty to argue with, but at least it won’t be so embarrassing.

Posted by: David Gessel at May 12, 2006 01:36 AM

I have to dissagree with your last bit of deconstruction, specifically: “Wives and prostitutes are competing commodities (in the reductionist view of economists, that is), but wives are distinctly superior in that they can produce children that are socially recognized as coming from the father.”

Yes just yes, To understand why you must understand that in reductionist economics only paid labor has any value. If we assume we are speaking of a housewife we can then assume that her labor involves but is not limited to sex, cooking, cleaning, raising childeren..etc, in essences she has a high value/cost for the husband and her wage is essentially his financial support. As for the prostitute’s value/cost to the man it is much less and (as eluded to earlier in your rebuttal) there are no strings attached and no questions asked, it is simply a service performed for a fee. With a prostitute he does not have to worry about responses such as, “you want me to do what!” or “I can’t believe you asked that!” and other such responses that could have a very negative effect on a marrige or just severe embarrasment.

In essence, I agree with you statment that men seek out wives and prostitutes for different reasons, however that does not change the fact that they are competing commodities in that they both look to perform labor for a profit from a singular source and as such they are in direct competition.

Posted by: NonEntity at May 14, 2006 02:27 AM

By way of utterly idiosyncratic assumption, I think that the binary social opposition which K&E posit between sex-work and traditional wifery is probably least relevant for recreational sex-work performed in an urban center where individuals can afford to pay $150-300 per hour for a sex workers services. In a locale like that, I would instead posit that sex-work wage premiums are a reaction to the declining earnings curve as a sex-worker ages and (potentially) the “locked-in” nature which a career as a sex-worker creates (assuming that sex-work is a full-time occupation, and that potential employers would be hesitant to accept “Sex Worker” as a prior occupation). Certainly, there is also a wage-risk premium at work based on the potential reputational damage and the potential for criminal prosecution.

Frankly, in environs like New York and LA, I’d imagine that the above explanations are more meaningful in and of themselves rather than the “prostitutes or wives” explanation which K&E posit. Certainly, there is the assumption made by many economists that the strategic advantages of marriage make it the ultimate goal of all men and women - a not unreasonable assumption (but not one I would adopt) - but I read K&E as making a point based specifically on child-legitimacy. I see no real importance attached to legitimacy in modern urban (mostly) Western centers. In other places, times and cultural settings, the maintenance of the patriline can be a major preoccupation. Sex-work located in these places probably is compensated at a premium based on the forfeiture of the capability to be a patriline-acceptable mother. In places, times and cultural settings where kinship is more fluid and less important, I find the other explanations for high sex-worker wages are more persuasive.

And by the way, in an economics paper, nobody gets to be a person, so sex-workers shouldn’t feel singled out…

Posted by: Mike at May 15, 2006 03:09 AM

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