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Israel’S Immigration Story: Winners And Losers

Author

Listed:
  • Assaf Razin

    () (Tel Aviv University)

Abstract

The exodus of Soviet Jews to Israel in the 1990s was a unique event. The immigration wave was distinctive for its large high skilled cohort, its quick integration into the domestic labor market, and its unprecedented election participation rate. The wave of immigration changed the entire economic landscape: It raised productivity, underpinned by the information technology surge, and had a significant impact on income inequality. The extraordinary experience of Israel, which absorbed three-quarters of a million immigrants from the Former Soviet Union within a short time, is also relevant for the current debate about winners and losers from immigration. This paper provides evidence and a rigorous political-economy explanation for a potential link between the immigration wave and the markedly changed level of redistribution in Israel’s welfare state.

Suggested Citation

  • Assaf Razin, 2018. "Israel’S Immigration Story: Winners And Losers," Israel Economic Review, Bank of Israel, vol. 15(1), pages 73-106.
  • Handle: RePEc:boi:isrerv:v:15:y:2018:i:1:p:73-106
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    References listed on IDEAS

    as
    1. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August.
    2. Zvi Eckstein & Yoram Weiss, 2004. "On The Wage Growth of Immigrants: Israel, 1990-2000," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 665-695, June.
    3. Assaf Razin & Efraim Sadka & Phillip Swagel, 2002. "The Aging Population and the Size of the Welfare State," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 900-918, August.
    4. David S. Lee & Enrico Moretti & Matthew J. Butler, 2004. "Do Voters Affect or Elect Policies? Evidence from the U. S. House," The Quarterly Journal of Economics, Oxford University Press, vol. 119(3), pages 807-859.
    5. Jess Benhabib & Boyan Jovanovic, 2012. "Optimal Migration: A World Perspective," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(2), pages 321-348, May.
    6. Seth D. Zimmerman, 2014. "The Returns to College Admission for Academically Marginal Students," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 711-754.
    7. Robert E.B. Lucas (ed.), 2014. "International Handbook on Migration and Economic Development," Books, Edward Elgar Publishing, number 15465, December.
    8. Razin, Assaf & Sadka, Efraim & Suwankiri, Benjarong, 2011. "Migration and the Welfare State: Political-Economy Policy Formation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262016109, March.
    9. Sarit Cohen & Chang-Tai Hsieh, 2001. "Macroeconomic and Labor Market Impact of Russian Immigration in Israel," Working Papers 2001-11, Bar-Ilan University, Department of Economics.
    10. repec:mtp:titles:0262037343 is not listed on IDEAS
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    More about this item

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F6 - International Economics - - Economic Impacts of Globalization
    • H0 - Public Economics - - General

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