A law and economic analyses of prostitution: new insights from the Italian market

Roberto Ippoliti (Università del Piemonte Orientale)
Fabrizia Santini (Università del Piemonte Orientale)

Abstract

This work proposes a law and economic analysis of prostitution in Italy, considering the current sex market and the opportunities created by a legislative reform of this profession. Moving among the shadows of this market, authors present the peculiarities of this market that is characterized by an unregulated profession, even if tolerated by the institutions. Paradoxically, autonomous workers can offer their services on the sex market but, since the profession does not exist officially, they are not subject to taxation, and they have no recognition of labor rights.
Considering the current Italian reality, this work is twofold: it proposes the legal foundations to recognize the activity of sex workers and their tax obligations, as well as their labor rights (i), and it offers a budget impact analysis if a reform of such market would be adopted by the policy maker (ii). According to the proposed insights, there are significant policy and practical implications that could lead the policy maker in an effective regulation of this profession.

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