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Endogenous risk-taking and physical appearance of sex workers
Peter H Egger1, Andreas Lindenblatt2
1ETH Zurich (KOF Swiss Economic Institute), CEPR, CESifo, GEP, and WIFO, ETH Zürich, KOF Konjunkturforschungsstelle, LEE G 116, Leonhardstrasse 21, Zurich, Switzerland. egger@kof.ethz.ch.
Abstract:
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.
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