Income effects of prostitution and sex crimes: Evidence from Spain

Abstract

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Recent literature found evidence supporting a substitution relationship between prostitution and sex crimes. Yet, thus far little is known about the effect of an income shock on prostitution and sex crimes. This paper makes use of the exceptional evidence provided by the Spanish Christmas Lottery to study the effect of a pure income effect on both prostitution and sex crimes. Spanish law used to separate between violent and non violent sex crimes, this allows to check whether results differ across this dimension. The results support that prostitution and sex crimes are normal goods. Yet, sex crimes are a normal good due to violent sex crimes.