An analysis of literature relating to illegitimate work and it's contribution to the labour market - Essay Example

In many societies the same people who financial support prostitution when encounter with other about the topic claim they are against it due to social taboos that force people to take a position which they truly do not support. This paper analyzes and examines the subterranean economy which includes the sexual marketplace. The underground economy involves the occurrence of economic activity that is not detected by the government and is not included as part of the official figures since they are not suppose to exist tax is not imposed upon them (Varian, 2003).

This underground economy affects the flow of the economy since the flow derived from these activities ends up being laundered in the economy by using the illegal income to purchase goods and services in the economy. In the United States the size of the underground economy is approximately 13% to 14% the size of the legal economy (Gutmann, 1983). Among the many activities make up the composition of the subterranean economy are prostitution, drug trade, labor of illegal immigrants, trafficking of illegal precious metals, gambling activities of bookies, or any other form of labor such as a babysitting jig that does is not accounted for by the government as a form of income.

It is estimated that the subterranean economy creates between 15 to 20 million jobs in the United States (Baird, 2007). This a positive consequence of this type of activity, but in general the jobs generated by this economy the workers such as prostitutes and drug sellers working on the spot are workers whose human rights are constantly abused by the gangster who controlled this marketplace. Prostitution is one of the segments of the underground economy. Worldwide the sex game is valued at over $12 billion a year a figure that does don’t account the revenues generated in the pornography industry which is a multibillion dollar industry that is legal activity which the considers in its official numbers, but there is a lot of