The Venkatesh-Levitt paper on the economics of prostitution in Chicago shows that prostitutes are arrested about one out of every 450 tricks—but are forced to give “freebies” to police for about 3% of their tricks to avoid arrest. On the one hand, I’m appalled at the utter corruption exhibited by law enforcement here, and wonder to what extent this illegal “perk” acts as a public-choice rationale for law enforcement to oppose legalization and regulation of brothels. On the other hand, that 3% of labor extorted by the police is a heck of a better rate than the 30% or so tax rate various governments make me pay…
To see the Report, CLICK HERE
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