Group-based differences in intra-generational earnings mobility in Israel

High earnings inequality, by itself, is less of a problem if a society is characterized by high earnings mobility rates. Using the matched 1983–1995 census file created by the Israeli Central Bureau of Statistics, which includes data for individuals who were included in both the 1983 and 1995 demographic samples of the census, this study focuses on the differential mobility rates of the various gender–ethnic groups in the Israeli labor market, as well as on the determinants of upward earnings mobility. The findings indicate that rising inequality between the dominant and subordinate groups slows down the impact of high rates of earnings mobility in Israel. Specifically, native-born Ashkenazi men (the most advantaged group) have a firm hold on the high earnings positions. Furthermore, the data show that the earnings gap between Ashkenazi men and most other groups has increased over time. Although the other groups, particularly women, also experienced some upward mobility, this mobility took place across the lower quintiles, where earnings are low.     

Seasonal migration of rural labor in India

The impact of seasonal migration has been overlooked by students of migration. A unique data set collected in Dungarpur – one of the less developed districts of India – allows us to closely examine both the determinants and impact of seasonal migration. Detailed information was gathered from all members of 624 households, thus enabling analyses at both individual and household levels. The findings indicate that seasonal migration among rural laborers is wide-spread. Rural households in India use migrant labor offered by their members to improve their well-being by both reducing the impacts of inferior conditions and by raising household's income levels. Migrant labor is a compensating mechanism used by households to reduce their disadvantageous position. Migrant households are characterized by lower education levels, lower levels of income from agriculture, and by an inferior geographical location. However, those households sending migrant labor are found to have higher income levels than those not sending migrant labor. Income from migrant labor accounts for almost 60% of total annual income of households sending at least one migrant laborer. Such findings are in accordance with explanations derived from the `new economics of migration'. We can thus learn that migration-related decisions should not evaluated only on the basis of utility maximization of individual migrants, but also on the basis of risk reducing by households.     

Estimating Self‐Selection of Immigrants: Comparing Earnings Differentials Between Natives and Immigrants in the US and Israel

Immigrants’ economic assimilation in host countries is determined by patterns of self‐selection on both – observed attributes (mainly human capital) and unobserved attributes of the immigrants from their source countries. In the present study immigrants’ economic assimilation in the United States and Israel are compared. More specifically, the study compares the impact of immigrants’ unobserved characteristics on their earnings in both countries by applying a model for decomposing difference in differentials. It makes use of United States and Israeli decennial census data for comparing self‐selection patterns on unobserved attributes of Jewish immigrants from the former Soviet Union (FSU) who arrived in the United States and Israel during the 1970s. The results indicate that FSU immigrants who chose the United States have significantly higher levels of unobserved earnings determinants than those who chose Israel. These results are discussed in light of migration theories.