Analyzing the Social Cost of Human Trafficking: An Economic Framework

This chapter presents a framework grounded in economic theory for analyzing social costs associated with human trafficking. We open with a broad perspective to clarify our definition of human trafficking and explain fundamental economic concepts. Four categories of cost that result from trafficking behavior and social responses to it are identified. We focus in detail on one type of cost: harms imposed on individuals, families, and communities. Specific harms are delineated, and we describe approaches to assign monetary values to them. Resources used by traffickers and in anti-trafficking efforts are considered as other elements of social cost. By treating injustice as a particular type of cost, we incorporate a moral imperative opposed to trafficking while maintaining scientific clarity. Practical application of the framework is discussed in the light of significant empirical challenges.