Measuring the Non-Observed Economy:

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" Measuring the Non-Observed Economy: "
KIM, WONSOON

Document Type	:	AL
Record Number	:	920165
Doc. No	:	LA8wk7r6qz
Title & Author	:	Measuring the Non-Observed Economy:. A Survey-Based Study of Demand in the Korean Prostitution Market [Article]\ KIM, WONSOON
Date	:	2013
Title of Periodical	:	UC Berkeley
Abstract	:	Illegal activities are by their nature difficult to measure, despite the potentially important role they play in the economy. Their inclusion in Korea’s GDP is necessary to reflect Korea’s national economy more precisely. In this paper, I use a variety of survey methods to provide an estimate of the incidence of prostitution. I estimate the demand for prostitution services in Korea by conducting stratified random sampling surveys of 671 Korean adult males. Because the survey topic was sensitive, I conducted both randomized response (RR) and direct response surveys and compared the results. The RR survey interview method allows respondents to respond to sensitive issues while maintaining confidentiality. According to the survey results, participants felt protected by the RR questionnaire design and provided more accurate answers. I estimate that about 60 percent of Korean adult males seek the services of prostitutes at least once in their lifetimes and about 40 percent of Korean adult males seek the services of prostitutes at least three times annually. I also found that demographic variables such as education and income levels, the number of sex partners, and marriage status determined the probability that a male would seek the services of a prostitute. The estimated total revenue of prostitution services in Korea is approximately