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The Impact of Mass Migration on the Israeli Labor Market

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  • Rachel M. Friedberg

Abstract

Immigration increased Israel's population by 12 percent between 1990 and 1994, after emigration restrictions were lifted in an unstable Soviet Union. Following the influx, occupations that employed more immigrants had substantially lower native wage growth and slightly lower native employment growth than others. However, because the immigrants' postmigration occupational distribution was influenced by relative labor market conditions across occupations in Israel, Ordinary Least Squares estimates of the immigrants' impact on those conditions are biased. Instrumental Variables estimation, exploiting information on the immigrants' former occupations abroad, suggests no adverse impact of immigration on native outcomes.
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Suggested Citation

  • Rachel M. Friedberg, 1996. "The Impact of Mass Migration on the Israeli Labor Market," Working Papers 1996-28, Brown University, Department of Economics.
    • Handle: RePEc:bro:econwp:96-28
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    References listed on IDEAS

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    1. Goldin, Claudia & Libecap, Gary D. (ed.), 1994. "The Regulated Economy," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226301105, June.
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    3. Hercowitz, Zvi & Kantor, Nirit & Rubin Meridor, Leora, 1993. "Immigration and Growth Under Imperfect Capital Mobility: The Case of Israel," Foerder Institute for Economic Research Working Papers 275580, Tel-Aviv University > Foerder Institute for Economic Research.
    4. Weiss, Yoram & Gotlibovski, Menachem, 1994. "Immigration, Search and Loss of Skill," Foerder Institute for Economic Research Working Papers 275592, Tel-Aviv University > Foerder Institute for Economic Research.
    5. Claudia Goldin & Gary D. Libecap, 1994. "The Regulated Economy: A Historical Approach to Political Economy," NBER Books, National Bureau of Economic Research, Inc, number gold94-1, May.
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