Abstract

This independent study examines the relationship between economic disparities (measured using the Gini coefficient) and human trafficking. Economic theory suggests that income inequality and labor market vulnerability can increase the risk of exploitation by expanding the number of individuals susceptible to trafficking while also shaping demand for low-cost forced labor. Despite human trafficking being a global issue, there is a minimal amount of extensive research done on the relationship between economic disparities and trafficking outcomes. One reason could be due to the European Union not having a universally recognized definition and empirical evidence until the year 2000.

To examine this relationship, a country fixed effects panel regression model was estimated using datasets obtained from Eurostat and the World Bank. The analysis includes 34 different countries between the years 2014 and 2023 and evaluates the relationship between income inequality and reported cases of both labor trafficking and overall human trafficking. The results show that there is no significant relationship between the Gini coefficient and human or labor trafficking in the short run. The findings also suggest that countries with a weaker rule of law may show a stronger relationship between economic disparities and trafficking rates; however, these relationships are not statistically significant.

Despite the lack of statistical significance, the study contributes to an under-researched topic by being one of the first to offer empirical evidence on income inequality and trafficking rates. It also highlights the importance of institutional quality, measurement limitations, and under-reporting when interpreting trafficking data.

Advisor

Liu, Jancy

Department

Economics

Keywords

Human Trafficking, Economic Inequality, Economic Disparities, Europe, Gini Coefficient, Rule of Law

Publication Date

2026

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2026 Sylvia G. Direnzo