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Does mass immigration destroy institutions? 1990s Israel as a natural experiment

Listed author(s):
  • Powell, Benjamin
  • Clark, J.R.
  • Nowrasteh, Alex
Registered author(s):

    The relaxation of emigration restrictions in the Soviet Union and the State’s subsequent collapse led to a large exogenous shock to Israel’s immigrant flows because Israel allows unrestricted immigration for world-wide Jews. Israel’s population increased by 20% in the 1990s due to immigration from the former Soviet Union. These immigrants did not bring social capital that eroded the quality of Israel’s institutional environment. We find that economic institutions’ improved substantially over the decade. Our synthetic control methodology indicates that it is likely that the institutions improvement would not have occurred to the same degree without the mass migration. Our case study indicates that immigrant participation in the political process is the main mechanism through which the migration caused institutional change.

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    File URL: http://www.sciencedirect.com/science/article/pii/S016726811730166X
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    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 141 (2017)
    Issue (Month): C ()
    Pages: 83-95

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    Handle: RePEc:eee:jeborg:v:141:y:2017:i:c:p:83-95
    DOI: 10.1016/j.jebo.2017.06.008
    Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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