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- W2184260040 abstract "This paper documents how the U.S. military presence in Thailand during the Vietnam War led to the subsequent development of the Thai sex industry. We show that the sex industry is currently concentrated in districts near former U.S. bases and provide causal estimates by comparing the surroundings of Thai military bases used by the U.S. army (treated group) to districts close to unused Thai bases or airelds (control groups). We exploit the distance to active enemy bases in Vietnam as an exogenous factor determining the use of only some Thai bases by the U.S. Army. Our estimates suggest that there are currently between 5 and 9 times more commercial sex workers in treated districts relative to control districts. Surprisingly, the sex industry has become even more concentrated around these red-light districts over the past decades in spite of the departure of U.S. servicemen in 1975 and poor locational fundamentals. We propose a simple theoretical rationale based on information asymmetry in which the U.S. military presence aected the sex market through reputation building from sellers. We then provide evidence that, in treated districts, sex establishments dierentiated their services horizontally and vertically, thereby attracting foreigners otherwise held up by information asymmetry." @default.
- W2184260040 created "2016-06-24" @default.
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- W2184260040 date "2014-01-01" @default.
- W2184260040 modified "2023-09-24" @default.
- W2184260040 title "Persistent Impacts of Temporary Demand Shocks: How U.S. Servicemen Shaped Thailand's Sex Industry" @default.
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