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Socioeconomic Dynamics Of Local Authorities In Israel

Author

Listed:
  • Moshe Justman

    (Ben-Gurion University)

  • Avia Spivak

    (Ben-Gurion University and Bank of Israel)

Abstract

This study describes the socioeconomic dynamics of Israel’s one hundred largest local authorities between 1983 and 1995, and identifies factors that affected their relative levels of socioeconomic well-being in this period. A direct comparison of their rankings in these two years highlights the relative decline of the southern development towns and of places with large ultra-orthodox populations, and the relative rise of Arab towns and suburban communities in the central and northern regions of the country. Econometric estimates quantify the effect of human capital and the quality of municipal administration, the short-term impact of the mass immigration from the former Soviet Union, and the influence of shifts in national priorities. The results highlight the considerable impact that policy variables can exert on local socioeconomic development. Better schools, good local government and the different policy levers through which national priorities are realized, are the means for extricating local authorities trapped in a steady state of poor socioeconomic development, and reclaiming the rights of their residents to a fair chance at attaining a reasonable level of material welfare.

Suggested Citation

  • Moshe Justman & Avia Spivak, 2004. "Socioeconomic Dynamics Of Local Authorities In Israel," Israel Economic Review, Bank of Israel, vol. 2(1), pages 1-27.
    • Handle: RePEc:boi:isrerv:v:2:y:2004:i:1:p:1-27
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    References listed on IDEAS

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    1. Moshe Justman & Jacques-Francois Thisse, 2000. "Local Public Funding of Higher Education When Skilled Labor is Imperfectly Mobile," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(3), pages 247-258, May.
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    6. Durlauf, Steven N, 1996. "A Theory of Persistent Income Inequality," Journal of Economic Growth, Springer, vol. 1(1), pages 75-93, March.
    7. Gabriel, Stuart A. & Justman, Moshe & Levy, Amnon, 1987. "A simultaneous-equations analysis of urban development: Migration and industrial growth in Israel's new towns," Journal of Urban Economics, Elsevier, vol. 21(3), pages 364-377, May.
    8. Thomas J. Nechyba, 2000. "Mobility, Targeting, and Private-School Vouchers," American Economic Review, American Economic Association, vol. 90(1), pages 130-146, March.
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    Cited by:

    1. Galil, Koresh & Spivak, Avia & Tur-Sinai, Aviad, 2023. "Socioeconomic status and individual investors’ behavior during a financial crisis," Journal of Behavioral and Experimental Finance, Elsevier, vol. 40(C).
    2. Eran Leck & Shlomo Bekhor & Daniel Gat, 2008. "Equity Impacts of Transportation Improvements On Core and Peripheral Cities," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 1(2), pages 153-182.
    3. Koresh Galil & Avia Spivak & Aviad Tur-Sinai, 2023. "Socioeconomic Status and Individual Investors’ Behavior during a Financial Crisis," Working Papers 2311, Ben-Gurion University of the Negev, Department of Economics.

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