Risk aversion in the small and in the large: Calibration results for betweenness functionals

A reasonable level of risk aversion with respect to small gambles leads to a high, and absurd, level of risk aversion with respect to large gambles. This was demonstrated by Rabin (Econometrica 68:1281–1292, 2000) for expected utility theory. Later, Safra and Segal (Econometrica, 2008) extended this result by showing that similar arguments apply to many non-expected utility theories, provided they are Gateaux differentiable. In this paper we drop the differentiability assumption and by restricting attention to betweenness theories we show that much weaker conditions are sufficient for the derivation of similar calibration results.

Volunteers and the risk of posttraumatic stress disorder

Symptoms of posttraumatic stress disorder (PTSD) result from exposure to a traumatic event and influence a person's ability to cope psychologically. Recent documentation from emergency rooms shows that medical personnel, including volunteers who treated severely injured people, can develop symptoms of PTSD even though the volunteers themselves were not personally subjected to the stressful event. This article finds similar results among adolescents who volunteered with Magen David Adom (MDA), Israel's national emergency medical, disaster, ambulance, and blood bank service. Because of the security threats Israel has faced, these adolescents are likely to be exposed to traumatic events during their volunteer service, and some may develop PTSD. This article explores who is most susceptible to developing PTSD and the underlying theories of why that may be the case. Since the adolescents' motives to volunteer vary, the article proposes that volunteers with certain motives retain their enthusiasm for volunteering despite the danger of developing PTSD symptoms. It also finds that some of the motives to volunteer correlated with a reduction in the level of PTSD symptoms. Understanding the adolescents' motivations to volunteer will help nonprofit leaders and managers allocate volunteers according to their motivations and the levels of threat a particular job entails.     

Utilitarianism and discrimination

Since Becker (1971), a common argument against asymmetric norms that promote minority rights over those of the majority is that such policies reduce total welfare. While this may be the case, we show that there are simple environments where aggregate sum of individual utilities is actually maximized under asymmetric norms that favor minorities. We thus maintain that without information regarding individual utilities one cannot reject or promote segregation-related policies based on utilitarian arguments.     

Changing patterns of Internal Migration 1970–1990: A comparative analysis of jews and whites in The United States

Independently conducted yet complementary sets of data from the 1970/1971 and 1990 National Jewish Population Surveys and the U.S. censuses of the same changes in the internal migration of Jews and whites during the periods 1965–1970(1971) and 1985–1990. Interstate lifetime and five-year migration rates among Jews increased to levels significantly surpassing those of whites. Adjusting Jewish migration rates for the educational achievement of their white counterparts did not have much of an effect on lifetime migration or on the recent migration of the 1970/1971 Jewish population; however, it accounted meaningfully for the migration propensities of Jews in the period 1985–1990. These findings suggest that socioeconomic status has begun to play a larger role in promoting different migration patterns than in promoting ethnic group differences. Further, the direction of Jewish migrations followed those of whites (i.e., from the Northeast and Midwest to the South and West); and due to their higher migration rates, Jews have considerably narrowed the regional distribution differences between themselves and whites. I interpret these results as evidence of the weakening role of ethnicity in present-day America.     

Immigration,Gender, and Earnings in Israel

This study describes and accounts for gender differences in earnings among the foreign-born in Israel and how these differences vary by origin countries. It expands on an earlier study that examined the effect of being foreign-born and female on employment status. I address three major questions: Do earnings corroborate the “double disadvantage” of immigrant women relative to both native-born women and native and foreign-born men? How do gender differences in earnings evolve with the prolongation of tenure in the new country? Does the combined effect of nativity status and gender act similarly among all foreign-born groups? Results of OLS regressions from the 1995 population census indicates that, everything else being equal, immigrants, including immigrant women, out-earn native-born men. The effect of tenure, by single year, shows that immigrant men and immigrant women follow very similar trajectories but the latter achieve similarity to native-born men much sooner. A detailed analysis reveals important stratification by country of birth. All the immigrant women who out-earned native men and native women originated in America or Europe. By contrast, all immigrant women who are at a disadvantage relative to native-born men are from Asia or Africa. The most common pattern, in which immigrant women earn as much as native-born men do but out-earn native-born women, characterizes immigrants from both Asia–Africa and Europe–America. The results are discussed in reference to three working hypotheses—“absorption climate,” “immigration motivation,” and “socio-cultural norms”—and in close connection with observations from the investigation on employment status.     

Language Acquisition,Employment Status,and the Earnings of Jewish and Non-Jewish Immigrants in Israel

This article analyses the Hebrew language proficiency, probability of employment, and labour market earnings of immigrants in Israel. It uses the 2010/11 Immigrant Absorption Survey conducted by the Israeli CBS. In addition to standard immigration, demographic, and human capital variables, the analysis includes unique features: the study of long-duration immigrants, analyses of males’ and females’ primary reasons for immigration, the subsidized intensive Hebrew language training programme, Ethiopian Jews, and Jewish and non-Jewish immigrants from the Former Soviet Union. Results from multivariate analyses largely accord with the “standard theoretical model” of language proficiency regarding the mechanisms of “exposure”, “efficiency”, and “economic incentives”. Acquaintance with the local language increases the likelihood of being employed and has positive earnings outcomes. We discuss implications of the findings for public policy which can improve the adjustment of these new immigrants to their new society, hence also moderate inter-group tensions.     

Democratically Elected Aristocracies

The article suggests a formal model of a two-tier voting procedure, which unlike traditional voting systems does not presuppose that every vote counts the same. In deciding a particular issue voters are called in the first round to assign categories of their fellow-citizens with differential voting power (or weights) according to the special position or concern individuals are perceived to have with regard to that issue. In the second stage, voters vote on the issue itself according to their substantive view and their votes are counted in the light of the differential weights assigned in the first round. We analyze formal and philosophical reasons that support the model.     

English‐Language Proficiency among Israeli Jews and Palestinian Arabs in the United States, 1980–2000

This study assesses the determinants of English‐language proficiency among three subgroups of Israeli immigrants in the United States, namely native‐born Israeli Jews, foreign‐born Israeli Jews, and Palestinian Arabs, and how these determinants have changed over time. Multivariate analyses of decennial censuses from 1980, 1990, and 2000 reveal substantial differences in the directions and significance of the relationships between the independent variables and English proficiency of the subgroups under investigation. Ethnoreligious affiliation per se is seen to be an important factor that consistently explains intra‐group variation in English proficiency. This lends support to the split approach over the lump approach in attempting to understand immigrants’ linguistic dynamics in the new country. The findings are discussed in reference to three working hypotheses – “exposure,” “efficiency,” and “economic incentives” – and in the specific sociopolitical conditions of Jews and Arabs at both origin and destination.     

Super Majoritarianism and the Endowment Effect

The American and some other constitutions entrench property rights by requiring super majoritarian voting as a condition for amending or revoking their own provisions. Following Buchanan and Tullock [The Calculus of Consent, Logical Foundations of Constitutional Democracy (University of Michigan Press, Ann Arbor), 1962], this paper analyzes individuals' interests behind a veil of ignorance, and shows that under some standard assumptions, a (simple) majoritarian rule should be adopted. This result changes if one assumes that preferences are consistent with the behavioral phenomenon known as the endowment effect. It then follows that (at least some) property rights are best defended by super majoritarian protection. The paper then shows that its theoretical results are consistent with a number of doctrines underlying American Constitutional Law.     

Housing Adjustment Among Immigrants in Israel: Application of Complementary Non-Metric and Metric Techniques

This study applies two different complementary statistical techniques to examine the structure and determinants of homeownership and consumption of household goods among immigrants in Israel. Findings from partial-order analysis (POSAC) reveal significant differences between immigrant groups by type, rather than level, of household characteristics. Suppliers of entertainment (television) and of information-communication (computer) are the items that most strongly distinguish between immigrants. The joint direction of the partially ordered space corresponds with home and car ownership. Immigrant groups are dispersed in different parts of the household typology; with increased duration of residence in Israel immigrants move, albeit in varied rhythms, toward improved housing conditions. A complementary logistic regression analysis, which controls for socio-demographic variation and detailed tenure in Israel, show a likelihood of convergence of immigrants from all origin countries with the core native-born group in owning a home. For other household goods, the findings largely coincide with the typology derived from POSAC. The findings are discussed in reference to three conceptual expectations of “cultural norms”, “adjustment”, and “structural-environmental considerations”.