Decomposition of Changes in Korean Wage Inequality, 1998–2007

South Korea experienced a steep increase in wage inequality between the Asian financial crisis in 1997 and the global financial crisis in 2008. This paper investigates the causes of the sharp change during that time period by looking at the contributions of changes in the distributions of schooling and unionization. The effects are estimated applying two robust distributional function based decomposition methods on Korean Labor and Panel Survey data for the time period 1998–2007. The results suggest changes in the distribution of schooling can explain about 10 % of the changes in the 90/50 percentile wage gap. The declining unionization rate does not have much impact on the upward trend of Korean wage inequality. In addition, aggregate decomposition results suggest that changes in labor force composition can explain a significant proportion of the total wage changes in the upper-tail of the distribution. Based on our findings we provide a list of policy recommendations to address the wage inequality issue in Korea.     

Realistic Free-Spins Features Increase Preference for Slot Machines

Despite increasing research into how the structural characteristics of slot machines influence gambling behaviour there have been no experimental investigations into the effect of free-spins bonus features—a structural characteristic that is commonly central to the design of slot machines. This series of three experiments investigated the free-spins feature using slot machine simulations to determine whether participants allocate more wagers to a machine with free spins, and, which components of free-spins features drive this preference. In each experiment, participants were exposed to two computer-simulated slot machines—one with a free-spins feature or similar bonus feature and one without. Participants then completed a testing phase where they could freely switch between the two machines. In Experiment 1, participants did not prefer the machine with a simple free-spins feature. In Experiment 2 the free-spins feature incorporated additional elements such as sounds, animations, and an increased win frequency; participants preferred to gamble on this machine. The Experiment 3 “bonus feature” machine resembled the free spins machine in Experiment 2 except spins were not free; participants showed a clear preference for this machine also. These findings indicate that (1) free-spins features have a major influence over machine choice and (2) the “freeness” of the free-spins bonus features is not an important driver of preference, contrary to self-report and interview research with gamblers.     

Partitioned log-rank tests for the overall homogeneity of hazard rate functions

In survival analysis, it is routine to test equality of two survival curves, which is often conducted by using the log-rank test. Although it is optimal under the proportional hazards assumption, the log-rank test is known to have little power when the survival or hazard functions cross. To test the overall homogeneity of hazard rate functions, we propose a group of partitioned log-rank tests. By partitioning the time axis and taking the supremum of the sum of two partitioned log-rank statistics over different partitioning points, the proposed test gains enormous power for cases with crossing hazards. On the other hand, when the hazards are indeed proportional, our test still maintains high power close to that of the optimal log-rank test. Extensive simulation studies are conducted to compare the proposed test with existing methods, and three real data examples are used to illustrate the commonality of crossing hazards and the advantages of the partitioned log-rank tests.     

Trend smoothness achieved by penalized least squares with the smoothing parameter chosen by optimality criteria

This work presents a study about the smoothness attained by the methods more frequently used to choose the smoothing parameter in the context of splines: Cross Validation, Generalized Cross Validation, and corrected Akaike and Bayesian Information Criteria, implemented with Penalized Least Squares. It is concluded that the amount of smoothness strongly depends on the length of the series and on the type of underlying trend, while the presence of seasonality even though statistically significant is less relevant. The intrinsic variability of the series is not statistically significant and its effect is taken into account only through the smoothing parameter.     

The effect of fast and slow decisions on risk taking

We experimentally compare fast and slow decisions in a series of experiments on financial risk taking in three countries involving over 1700 subjects. To manipulate fast and slow decisions, subjects were randomly allocated to responding within 7 seconds (time pressure) or waiting for at least 7 or 20 seconds (time delay) before responding. To control for different effects of time pressure and time delay on measurement noise, we estimate separate parameters for noise and risk preferences within a random utility framework. We find that time pressure increases risk aversion for gains and risk taking for losses compared to time delay, implying that time pressure increases the reflection effect of Prospect Theory. The results for gains are weaker and less robust than the results for losses. We find no significant difference between time pressure and time delay for loss aversion (tested in only one of the experiments). Time delay also leads to less measurement noise than time pressure and unconstrained decisions, and appears to be an effective way of decreasing noise in experiments.     

Semi-polynomial copulas

In this paper, we characterise a family of bivariate copulas whose sections between the main diagonal and the border of the unit square are polynomial, generalising several families of copulas, including those with quadratic and cubic sections. We also study a measure of association and the tail dependence for this class, illustrating our results with several examples.     

Self‐Construal,Career Decision Self‐Efficacy,and Perceived Barriers Predict Mexican American Women's Life Satisfaction

This study used the social cognitive theory of well‐being (SCTW; Lent, 2004 ) to examine the role of career decision self‐efficacy (CDSE), perceived educational barriers, and independent self‐construal on the life satisfaction of 176 Mexican American college women. A 3‐step hierarchical regression analysis indicated that independent self‐construal, CDSE, and fewer perceived educational barriers significantly predicted greater life satisfaction among Mexican American college women above and beyond the influence of socioeconomic status and generational status. These findings are consistent with SCTW and highlight the need for counselors and researchers to be aware of the role that self‐construal, CDSE, and perceived educational barriers can have on Mexican American women's life satisfaction. Implications for practice at the secondary‐school and university levels are discussed.     

Understanding the Dynamics of the Individual Donor’s Trust Damage in the Philanthropic Sector

Although trust is long known to be critical to predict behaviors in a charitable context, little research has examined trust damage and its effects on giving behavior. Trust damage is an intermediate state between trust and distrust, rather than a simple reversal or extension, and can change over time. Our research explores individual donor’s trust damage through a dynamic evolution. Across the longitudinal survey, we conclude that the trust damage of pre-giving, giving, and post-giving stage plays different roles in the decision-making process. Trust damage does not play a direct role in the giving intention, but it can indirectly affect giving intention through its impact on perceived benefit and perceived risk. Individual donor’s satisfaction has a strong effect on post-giving trust or continual trust damage, which in turn positively affects future giving intention and behavior. Several important insights for practitioners in the nonprofit sector are also discussed.     

The Meaning of Trust for Brazilians with Higher Education

The validity of the World Values Survey (WVS) question used to measure trust is disputed over and this article is intended to present the results of an online survey, conducted in Brazil, which tested the meaning of the term trust in the WVS question. The surveyed population is entirely Brazilian and the majority has received some form of higher education. The results of the survey partially corroborate the validity of the WVS and partially deny it. Within the results of this survey there are predominantly two dominant perspectives represented within the surveyed population including: respondents who think in friends and relatives as part of most people have a higher probability of also saying to trust most people which means that different people may be answering slightly different questions. However, respondents who say that trust most people have higher levels of trust in people in general than in family if compared with respondents who say to not trust most people which is in accordance with the expectation that the question adequately measures generalized interpersonal trust.     

Long-term care in Spain: Difficulties in professionalizing services

The aim of this article is to analyze the difficulties in professionalizing the long-term care system in Spain. Since 2006, the new Spanish law has recognized care as a subjective right, and regulations are being designed to create a framework for its professionalization. Nowadays, family remains the most important group of providers who care for their elders, and women remain the main informal caregivers. Why do families resist using public long-term care services and professional carers included in the new law? The hypothesis highlights sociocultural factors as an obstacle to professionalization of long-term care services in addition to political and economic factors. The results show qualitative data about expectations, preferences, and discourses that women caregivers have in relation to their responsibility. The empirical material includes 25 interviews with different profiles of caregivers and six focus groups with family caregivers. The article suggests that the Spanish ideal of care is a problem for the professionalization of services because the family remains as the main provider of care—without specific skills, knowledge, and abilities.