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I used to agree with the idea that legalizing it would attract epxloitive and abusive managers, increasing harm to (primarily) women. Now I don’t. Why? Because the “morally acceptable” workforce is already subject to predatory and abusive managers. Meanwhile, we already have labor slaves, immigrants separated from their passports, smugglers routinely demanding additional pay. You know what the “morally-acceptable” victims can do? Report themselves to authorities and get legal action and protection. You know what people knowingly engaging in illegal activities can’t do? Go to the authorities.
Make it legal. Make it visible. Make it taxable and licensable, if so needed. Keeping it in the dark means the workers will heavily skew towards desparation, knowing they’re risking legal consequences.
Couldn’t you also address that issue by decriminalizing being a sex worker, but keeping the other side of it illegal?