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The effect of redistribution on migration: Evidence from the Israeli kibbutz

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  • Abramitzky, Ran

Abstract

This paper tests a key theoretical prediction of public finance, that local redistribution induces sorting of the population so that less productive individuals are located in communities with more redistribution. Specifically, I use a longitudinal data set to test whether and to what extent the intensive redistribution practiced by Israeli kibbutzim encourages exit of more productive individuals and entry of less productive ones. The findings support the theoretical prediction. Kibbutz-leavers are more skilled than both stayers and other rural migrants and they earn higher wages upon exit than observably similar city natives and other migrants. In contrast, individuals who earn lower wages in the city are more likely to enter a kibbutz, but they are not more likely to move to other rural areas. These findings also support Borjas' hypothesis that migrants' self-selection depends on the difference in returns to skills between the origin and the destination.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 93 (2009)
Issue (Month): 3-4 (April)
Pages: 498-511

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Handle: RePEc:eee:pubeco:v:93:y:2009:i:3-4:p:498-511

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Web page: http://www.elsevier.com/locate/inca/505578

Related research

Keywords: Migration Redistribution Selection Brain drain Adverse selection;

References

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  1. George J. Borjas & Stephen G. Bronars & Stephen J. Trejo, 1992. "Self-Selection and Internal Migration in the United States," NBER Working Papers 4002, National Bureau of Economic Research, Inc.
  2. Ran Abramitzky, 2008. "The Limits of Equality: Insights from the Israeli Kibbutz," Discussion Papers 07-048, Stanford Institute for Economic Policy Research.
  3. Daniel Chiquiar & Gordon H. Hanson, 2002. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," NBER Working Papers 9242, National Bureau of Economic Research, Inc.
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  17. CREMER, Helmuth & PESTIEAU, Pierre, . "Factor mobility and redistribution," CORE Discussion Papers RP -1749, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  18. Carliner, Geoffrey, 1980. "Wages, Earnings and Hours of First, Second, and Third Generation American Males," Economic Inquiry, Western Economic Association International, vol. 18(1), pages 87-102, January.
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  21. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
  22. Abramitzky, Ran & Braggion, Fabio, 2006. "Migration and Human Capital: Self-Selection of Indentured Servants to the Americas," The Journal of Economic History, Cambridge University Press, vol. 66(04), pages 882-905, December.
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Citations

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Cited by:
  1. Burdín, Gabriel, 2013. "Equality under Threat by the Talented: Evidence from Worker-Managed Firms," IZA Discussion Papers 7854, Institute for the Study of Labor (IZA).
  2. Wiederhold, Simon & Nedelkoska, Ljubica & Neffke, Frank, 2013. "The Impact of Skill Mismatch on Earnings Losses after Job Displacement," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79739, Verein für Socialpolitik / German Economic Association.
  3. Guillermo Alves & Gabriel Burdin & Paula Carrasco & Andrés Dean & Andrés Rius, 2012. "Empleo, remuneraciones e inversión en cooperativas de trabajadores y empresas convencionales: nueva evidencia para Uruguay," Documentos de Trabajo (working papers) 12-14, Instituto de Economía - IECON.
  4. Ran Abramitzky, 2011. "Lessons from the Kibbutz on the Equality-Incentives Trade-Off," Journal of Economic Perspectives, American Economic Association, vol. 25(1), pages 185-208, Winter.
  5. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2012. "Europe's Tired, Poor, Huddled Masses: Self-Selection and Economic Outcomes in the Age of Mass Migration," American Economic Review, American Economic Association, vol. 102(5), pages 1832-56, August.
  6. Abramitzky, Ran & Lavy, Victor, 2013. "How Responsive is Investment in Schooling to Changes in Redistributive Policies and in Returns?," CAGE Online Working Paper Series 150, Competitive Advantage in the Global Economy (CAGE).
  7. Mark Koyama & Jean-Paul Carvalho, . "Development and Religious Polarization: The Emergence of Reform and Ultra-Orthodox Judaism," Discussion Papers 11/11, Department of Economics, University of York.
  8. Ebenstein, Avraham & Hazan, Moshe & Simhon, Avi, 2014. "Changing the Cost of Children and Fertility: Evidence from the Israeli Kibbutz," Discussion Papers 164526, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.

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