Question

What are the economic benefits of prostitution as a profession? What are the economic costs of the profession?

Answer 1

It's no secret that in every country, the sex industry exists, forming a significant part of the underground economy. Legalization would help shed light on the activities of the shadow sex industry, offering regulatory and taxation possibilities. Tax income thus generated could be used to improve public services, such as education, providing other professional opportunities for young women and thus helping to treat the root causes of prostitution. In Nevada (the only US state where prostitution is legal), female sex workers' annual tax revenues exceeded $20,000

Prostitution is a major export industry for many developing countries, and a source of foreign earnings, a means of redistributing income globally. For example, according to a 1998 Kyodo News report on South East Asia, "From 1993 to 1995, prostitution in Thailand was estimated to yield an annual income of between $22.5 billion and $27 billion."

Last but not least, legalization can significantly reduce the health risks associated with sexually transmitted diseases (STDs), like HIV. Unregulated prostitution is one of the principal sources of STD spread. Legalization (and regulation) would thus be a major tool of prevention, requiring sex workers to be tested regularly and improve their access to contraceptives, medical care and consultations. Legalization would not only reduce the incidence of STD but also reduce public expenditure on the prevention and/or treatment of STD consequences

Big government costs stem from taxes not paid by prostitutes working in the underground economy. The study puts the lost tax revenue at 115 million shekels per year, which works at 9,600 shekels per woman. That is based on the assumption that the government's estimate of 1.3 billion shekels is correct and that 40 per cent of that money would be spent elsewhere in the absence of working prostitutes

Even if the ex-prostitutes were all single mothers entitled to tax benefits and earned low wages, the tax levy for the state would still be 27 million shekels per year