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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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  • Abramitzky, Ran, 2009. "The effect of redistribution on migration: Evidence from the Israeli kibbutz," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 498-511, April.
  • Handle: RePEc:eee:pubeco:v:93:y:2009:i:3-4:p:498-511
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    Cited by:

    1. Sriya Iyer, 2016. "The New Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 54(2), pages 395-441, June.
    2. Caliendo, Marco & Künn, Steffen & Mahlstedt, Robert, 2017. "The return to labor market mobility: An evaluation of relocation assistance for the unemployed," Journal of Public Economics, Elsevier, vol. 148(C), pages 136-151.
    3. Brantly Callaway & William J. Collins, 2017. "Unions, Workers, and Wages at the Peak of the American Labor Movement," NBER Working Papers 23516, National Bureau of Economic Research, Inc.
    4. Gabriel Burdín, 2016. "Equality Under Threat by the Talented: Evidence from Worker‐Managed Firms," Economic Journal, Royal Economic Society, vol. 126(594), pages 1372-1403, August.
    5. repec:aea:jeclit:v:55:y:2017:i:4:p:1311-45 is not listed on IDEAS
    6. Carvalho, Jean-Paul & Koyama, Mark, 2016. "Jewish emancipation and schism: Economic development and religious change," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 562-584.
    7. 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.
    8. Ran Abramitzky & Victor Lavy, 2014. "How Responsive Is Investment in Schooling to Changes in Redistributive Policies and in Returns?," Econometrica, Econometric Society, vol. 82(4), pages 1241-1272, July.
    9. Ergete Ferede & Bev Dahlby & Ebenezer Adjei, 2015. "Determinants of statutory tax rate changes by the Canadian provinces," Economics of Governance, Springer, vol. 16(1), pages 27-51, February.
    10. repec:kap:pubcho:v:171:y:2017:i:1:d:10.1007_s11127-016-0400-1 is not listed on IDEAS
    11. 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 1832-1856, August.
    12. Leah Platt Boustan & Price V. Fishback & Shawn Kantor, 2010. "The Effect of Internal Migration on Local Labor Markets:American Cities during the Great Depression," Journal of Labor Economics, University of Chicago Press, vol. 28(4), pages 719-746, October.
    13. Avraham Ebenstein & Moshe Hazan & Avi Simhon, 2016. "Changing the Cost of Children and Fertility: Evidence from the Israeli Kibbutz," Economic Journal, Royal Economic Society, vol. 126(597), pages 2038-2063, November.
    14. Mark Koyama & Jean-Paul Carvalho, "undated". "Development and Religious Polarization: The Emergence of Reform and Ultra-Orthodox Judaism," Discussion Papers 11/11, Department of Economics, University of York.
    15. Daniel Meierrieks & Laura Renner, 2017. "Stymied ambition: does a lack of economic freedom lead to migration?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 977-1005, July.
    16. Ran Abramitzky & Leah Boustan, 2017. "Immigration in American Economic History," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1311-1345, December.
    17. 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.
    18. Tim Krieger & Laura Renner & Jens Ruhose, 2015. "Genetic Distance and International Migrant Selection," CESifo Working Paper Series 5453, CESifo Group Munich.
    19. Renner, Laura & Krieger, Tim & Ruhose, Jens, 2014. "Culture, Selection, and International Migration," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100434, Verein für Socialpolitik / German Economic Association.
    20. 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.

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