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

Listed author(s):
  • 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)

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.

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File URL: http://reaser.eu/RePec/rse/wpaper/REASER13_3Ayal_p26-35.pdf
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Article provided by Pro Global Science Association in its journal Published in Review of Applied Socio-Economic Research.

Volume (Year): 13 (2017)
Issue (Month): 1 (JUNE)
Pages: 26-35

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Handle: RePEc:rse:wpaper:v:13:y:2017:i:1:p:26-35
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  1. Schwartz, Moshe, 1999. "The Rise and Decline of the Israeli Moshav Cooperative: A Historical Overview," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 27(2).
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