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Does Competition Eliminate Discrimination? Evidence from the Commercial Sex Market in Singapore

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  • Huailu Li
  • Kevin Lang
  • Kaiwen Leong

Abstract

The street sex worker market in Geylang, Singapore is a highly competitive market in which clients can search legally at negligible cost, making it ideal for testing Diamond's hypothesis regarding search and monopoly pricing. As Diamond predicts, price discrimination survives in this market. Despite an excess supply of workers, but consistent with their self†reported attitudes and beliefs, sex workers charge whites (Bangladeshis) more (less), based on perceived willingness to pay, and are more (less) likely to approach and reach an agreement with them. Consistent with taste discrimination, they avoid Indians, charge more and reach an agreement with them less frequently.

Suggested Citation

  • Huailu Li & Kevin Lang & Kaiwen Leong, 2018. "Does Competition Eliminate Discrimination? Evidence from the Commercial Sex Market in Singapore," Economic Journal, Royal Economic Society, vol. 128(611), pages 1570-1608, June.
    • Handle: RePEc:wly:econjl:v:128:y:2018:i:611:p:1570-1608
    DOI: 10.1111/ecoj.12476
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    Cited by:

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    2. Shoji, Masahiro & Tsubota, Kenmei, 2022. "Sexual exploitation of trafficked children: Survey evidence from child sex workers in Bangladesh," Journal of Comparative Economics, Elsevier, vol. 50(1), pages 101-117.
    3. Masahiro Shoji & Kenmei Tsubota, 2018. "Sexual Exploitation of Trafficked Children: Evidence from Bangladesh," Working Papers 175, JICA Research Institute.
    4. Abel Brodeur & Warn N Lekfuangfu & Yanos Zylberberg, 2018. "War, Migration and the Origins of the Thai Sex Industry," Journal of the European Economic Association, European Economic Association, vol. 16(5), pages 1540-1576.
    5. Ignatenko, Anna, 2024. "Competition and Price Discrimination in International Transportation," Discussion Paper Series in Economics 6/2024, Norwegian School of Economics, Department of Economics.
    6. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    7. Siddique, Abu & Vlassopoulos, Michael & Zenou, Yves, 2023. "Market competition and discrimination," European Economic Review, Elsevier, vol. 152(C).
    8. Idrisov, Georgiy (Идрисов, Георгий) & Taganov, B.V. (Таганов, Б.), 2016. "Research of the Effect of Growth of Openness of the Russian Economy on Income Inequality in Russia [Исследование Влияния Роста Открытости Российской Экономики На Неравенство Доходов Населения В Рос," Working Papers 3136, Russian Presidential Academy of National Economy and Public Administration.

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    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination

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