How? Why would they work in a sweatshop if they could make more money as a prostitute?
The obvious answer would be that they have to have much more sex as a prostitute. After all, one prostitute can serve several clients, but a lot of workers only have one boss.
Prostitution is often illegal; perhaps as Luke Somers suggests this is encouraged by sweatshop owners trying to eliminate competition for workers. There is also a history in many places of using "rescued" prostitutes as essentially slave labor, as in the notorious Magdalene laundries in Ireland.
I've been looking for reliable evidence of a claim I've heard a few times. The claim is that the closing of sweatshops (by anti-globalization activists) has resulted in many of the child workers becoming prostitutes. The idea is frequently proffered as an example of do-gooder foolishness ignoring basic economics and screwing people over.
However, despite searching for a while, I can't find anything to indicate that this actually happened.
Some guy at the Library of Economics and Liberty mentions it here:
But in the article, Paul Krugman mentions the Oxfam study without citation:
I looked at some Oxfam stuff, but couldn't find the study.
A similar claim is made in The Race to the Top: The Real Story of Globalization by Tomas Larsson (go here and use the search tool for the word 'prostitution'), but doesn't mention the Oxfam study:
I looked for a paper or something by Maskus but came up empty.
I was taught this fact at a Poli Sci class in college, but I'm starting to think it's more likely to be an information cascade. Can anyone do a better job than me?
Thanks in advance.