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08-Jan-2018 11:37

So how do the authors examine this economic question about labor supply and short-term shocks in the context of Kenyan prostitutes?The authors identify how prostitutes react to temporary income shocks.The authors of this paper investigate an interesting economic question: How do individuals change the supply of their labor in the face of short-term unexpected income shocks?Rational theorists suggest that short-term shocks to income or lifestyle shouldn’t have large effects on how much labor supply one brings to market.

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The authors then test to see if the temporary shock causes the sex workers to increase their offerings of ‘risky’ sexual transactions.The researchers had 192 prostitutes keep diaries of their income, expenditures, transfer payments, and the “shocks” she encountered each day.In addition to income information, the subjects were asked to keep detailed records of client interactions, to include: activity performed (sex, blowjob, anal, massage, etc.), whether a condom was used, price that was paid, client profile, and so forth. The first question you may be asking is “What the heck does economic analysis of prostitutes in Kenya have to do with investing?Additional information regarding the construction of these results is available upon request.?

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Unable to combat my primal male instinct, I immediately flipped to the beginning of the article.The authors next present the “return to sex acts” table (see below).



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