Economist.com
London, February 6, 2009 – the article speculate about the supply of high end call girls during economic crisis and quotes some articles written earlier.

Economist.com
London, February 6, 2009 – the article speculate about the supply of high end call girls during economic crisis and quotes some articles written earlier.

WE WROTE a few years ago about the supply of high end call girls during economic crisis. I speculated that the supply and quality increases, citing anecdotal evidence from a former colleague who frequented the brothels of Argentina before and after their financial crisis. Faced with fewer compelling jobs, some men and women may find the sex industry an attractive option.

I recently interviewed a high end provider who claimed the market in New York has always been competitive. She has yet to see a big difference in quality or quantity of supply, but she has observed a greater price elasticity of demand. On the Eros guide (warning contains explicit content), the central clearing house of escort services in the New York area (of course, I only visited the Eros cite to research my forthcoming article on the subject), some of the “VIP” providers are offering “Wall Street adjusted courtesy rates”. A non trivial number of the women also claim to be formerly employed in the “financial services industry”.

Even in the worst economy, becoming a prostitute is not merely a financial decision. The increase in supply probably comes from people already on the fringe of the industry. For example, the New York Observer recently reported on the supply of Brooklyn-based hipster rent boys.

Over the next year, Shy’s new friend took him to Broadway shows and fancy dinners. There were expensive shopping excursions and weekend jaunts to L.A. Shy also got $3,000 worth of cosmetic dental work out of the deal. And yes, he became as intimate as it’s possible to become with another person. They also became very close. But, Shy said, the benefactor left town rather suddenly after the economy tanked this past fall, and it was over to RentBoy.com for him.

Whereas some young men were once subsidised by a single “benefactor”, more now must entertain a cadre of clients.

Jessica Quan recently wrote about the supply of kink workers (women who work as a dominatrix). It is legal in New York and does not involve actual sex. There still exists a stigma, but it may be a more palatable option for women looking to enter the sex industry (though both the provider I spoke to and Ms Quan regard kink and sensual message as harder work than being an escort).

Ms Quan noticed an increase in kink workers following the tech boom. Many of the women entering the industry worked in it before, while putting themselves through university. They often returned to it during tough economic times. Ms Quan suggests the supply of kink workers will increase as the recession deepens.

Will the increased supply drive the prevailing wage down, or is it sticky (there is talk of forming a union)? Maybe wages will stay the same because demand will also increase. There may be some guilt-ridden bankers in New York looking to get spanked.

Source: Economist.com