Paper short abstract:

he main purpose of this study is to understand the role of prostitution in the economy, assess how prostitution markets are organized, how technology shapes supply and demand, and the optimal use of law enforcement to legalize prostitution.

Paper long abstract:

The objectives addressed are the determination of sex worker prices, sexual bargaining and taxation in the sex trade. What makes the material unique is its explicit focus on economics as the primary methodology for organizing our understanding of prostitution. The findings are backed by statistical data from surveys from national registries, research, and reports. With reference to the analytical insights studied, the paper arrives at conclusive findings point to significant gaps in that Kenya is, as yet, not economically equipped to use prostitution for economic growth. It sheds light on underground markets, labor economics, risky behaviors, marriage, and gender. It is no secret that the sex industry exists in every country, forming a substantial part of the underground economy. Legalization would help shed light on the shadow sex industry activities, providing possibilities for regulation and taxation. Tax income thus generated could be used to improve public services, such as free education, free sanitary towels, giving young women other professional opportunities and in this way helping treat the social root causes of prostitution. For Kenya and many developing countries, prostitution is a major export industry and source of foreign earnings, a means of redistributing income on a global scale. We recommend prostitution to be legalized to ensure that taxes are collected from the sector, but these measures must be complemented by policies that challenge the structural basis of prostitution.