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Does rural household income depend on neighboring urban centers?Evidence from Israel

Author

Listed:
  • Kimhi, Ayal

    () (The Hebrew University, the Center for Agricultural Economic Research and the Shoresh Institution for Socioeconomic Research, Israel)

  • Sarit Menahem-Carmi

    (Ben-Gurion University and the Shoresh Institution for Socioeconomic Research, Israel)

Abstract

This research explores the dependence of rural incomes on nearby urban centers, mostly implied by rural-to-urban and/or urban-to-rural selective migration. Migration flows are affected by wage differentials as well as differences in housing costs and other amenities, and by commuting costs and costs of migration. An income-generating equation, which includes characteristics of nearby urban communities among the explanatory variables, is estimated for rural households in Israeli moshav villages. The results show that the population of nearby urban communities is significantly and positively associated with rural household per-capita income. The same is true for mean income in these communities. In addition, distance from urban communities affects rural income negatively, suggesting that commuting costs are important determinants of the direction of the net migration of high-income households.

Suggested Citation

  • Kimhi, Ayal & Sarit Menahem-Carmi, 2017. "Does rural household income depend on neighboring urban centers?Evidence from Israel," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 13(1), pages 26-35, JUNE.
  • Handle: RePEc:rse:wpaper:v:13:y:2017:i:1:p:26-35
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    rural; urban; income; distance;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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