Does Rural Household Income Depend on Neighboring Communities? Evidence from Israel
In Israel, rural communities are those with up to 2000 residents, and rural areas include only rural communities. This paper explores the dependence of rural incomes on nearby urban areas. This dependence is mostly implied by rural-to-urban or urban-to-rural selective migration (or both). Migration flows can be affected by differential wages, housing costs and other amenities, and by commuting costs and costs of migration. An income generating equation, that includes characteristics of nearby urban communities as well as other spatial indicators among the explanatory variables, is estimated for rural households in Moshav villages using 2006 survey data. The results show that the population of nearby urban communities is significantly associated with rural household per-capita income. In particular, the urban population within 10 km is positively associated with per-capita income, while the urban population within 10 to 40 km is negatively associated with per-capita income. These opposite effects suggest that commuting costs are among the major determinants of the direction of the net migration of high-income households. Surprisingly, other spatial variables, including average per-capita income in nearby urban communities, do not affect rural income significantly.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://departments.agri.huji.ac.il/economics/indexe.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mark Partridge & Ray D. Bollman & M. Rose Olfert & Alessandro Alasia, 2007. "Riding the Wave of Urban Growth in the Countryside: Spread, Backwash, or Stagnation?," Land Economics, University of Wisconsin Press, vol. 83(2), pages 128-152.
- Ayal Kimhi, 2000. "Is Part-Time Farming Really a Step in the Way Out of Agricultural?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 38-48.
- Kimhi, Ayal, 1998. "Institutional Environment, Ideological Commitment, and Farmers' Time Allocation: The Case of Israeli Moshavim," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 27-44, October.
- So, Kim Sui & Orazem, Peter & Otto, Daniel, 2009.
"The Effect of Housing Prices, Wages, and Commuting Time on Joint Residential and Job Location Choices,"
Staff General Research Papers
4050, Iowa State University, Department of Economics.
- Kim S. So & Peter F. Orazem & Daniel M. Otto, 2001. "The Effects of Housing Prices, Wages, and Commuting Time on Joint Residential and Job Location Choices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1036-1048.
- So, Kim S. & Orazem, Peter F. & Otto, Daniel M., 1998. "The Effects Of Housing Prices, Wages, And Commuting Time On Joint Residential And Job Location Choices," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20779, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Kimhi, Ayal, 2005. "Economic Well-Being in Rural Communities: The Role of Agriculture," 2005 Annual meeting, July 24-27, Providence, RI 19341, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- E. D. Gould, 2007. "Cities, Workers, and Wages: A Structural Analysis of the Urban Wage Premium," Review of Economic Studies, Oxford University Press, vol. 74(2), pages 477-506.
- Bruce L. Gardner, 2005.
"Causes of rural economic development,"
International Association of Agricultural Economists, vol. 32(s1), pages 21-41, 01.
- Anselin, Luc, 2002. "Under the hood : Issues in the specification and interpretation of spatial regression models," Agricultural Economics, Blackwell, vol. 27(3), pages 247-267, November.
- Tikva Lecker & Yochanan Shachmurove, 1999. "Immigration and socioeconomic gaps: theory and applications," Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 539-549.
- Hisham S. El-Osta & Ashok K. Mishra & Mitchell J. Morehart, 2007. "Determinants of economic well-being among U.S. farm operator households," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 291-304, 05.
- Mitch Renkow, 2003. "Employment Growth, Worker Mobility, and Rural Economic Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 503-513.
When requesting a correction, please mention this item's handle: RePEc:ags:huaedp:93134. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.