1. Washington D.C., USA, 22-27 July 2012www.aids2012.org Does Condom Use Affect the Earnings of Commercial Sex Workers? New Evidence from a Survey of Female Sex Workers in India Main Motivation of the study: Increased condom use is a major instrument for preventing HIV Condom use affects the price of sex work and welfare of the sex workers –Earlier studies found that there was a negative premium for using condoms There has been a rapid increase in use of condoms in sex work In the current scenario, is this finding still valid? Objectives: This paper examines the two-way association between price per sexual act and condom use in the commercial sex market. Swadhin Mondal and Indrani Gupta Institute of Economic Growth, Delhi, India

2. Washington D.C., USA, 22-27 July 2012www.aids2012.org Data and Methods: Survey data on 5498 female sex workers in India Simultaneous equations model Three-stage least squares (3SLS)method. Results: 72 % consistent condom users Brothel based sex workers are the highest condom users Sex worker received 52 percent higher premium for safe sex with regular clients

3. Washington D.C., USA, 22-27 July 2012www.aids2012.org Regression results of the simultaneous equation model Equation1: Dependent variable= Price per sex act Coefficient Age-8.66* Age 2 0.09 Hotel/bar/night club-based sex workers57.03*** Brothel-based sex workers-51.57*** Under contract35.26*** Income from other sources0.03*** Number of clients per day12.52*** Consistent condom use174.22*** Negotiation for condom use-18.63* Constant240.03*** Equation 2 : Dependent variable- consistent condom use Price per sex act0.00067*** Average years of education0.0167*** Age-0.0016 Age 2 0.0002* Availability of subsidized condoms0.1573*** Hotel/bar/night club-based sex workers-0.0337** Brothel-based sex workers0.1260*** Marital status0.1273*** Negotiation for condom use0.2368*** Constant0.016717 *= significant at 10 % level, **= significant at 5 % level,***= significant at 1 % level No negative impact of condom use on price Two way positive relationships between price and condom use Brothel based sex worker seem to be getting lower price when they adhere to safe sex. Conclusions: Unsafe sex is no longer seen as an attractive alternative Possible to further step up the intensity of behavioral interventions for enhancing condom use Brothel-based sex workers and regular partners of sex workers need special attention