Transactional Sex as a Response to Risk in Western Kenya

Though formal and informal sex work has long been identified as crucial for the spread of HIV/AIDS, the nature of the sex-for-money market remains poorly understood. Using a unique panel dataset constructed from 192 self-reported diaries, we find that women who engage in transactional sex substantially increase their supply of risky, better compensated sex to cope with unexpected health shocks, particularly the illness of another household member. These behavioral responses entail significant health risks for these women and their partners, and suggest that these women are unable to cope with risk through other consumption smoothing mechanisms.

Note

The term women who engage in transactional sex is used here to mean sex workers.

Consumption smoothing is an economic term that means saving and spending less so money is available when income drops.