Mass Migration to Israel and Natives' Transitions from Employment

36 Pages Posted: 16 Nov 2004

See all articles by Sarit Cohen-Goldner

Sarit Cohen-Goldner

Bar-Ilan University - Department of Economics; IZA Institute of Labor Economics

M. Daniele Paserman

Hebrew University of Jerusalem - Department of Economics; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

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Date Written: September 2004

Abstract

This Paper studies the impact of mass migration from the Former Soviet Union to Israel on natives' probability of moving from employment to non-employment in a segmented labor market that is defined by various combinations of schooling, occupation, industry, district of residence and experience. We find that the share of immigrants in a given labor market segment is generally positively associated with the probability of natives to move from employment in that segment to non-employment, both for males and females. When segment fixed-effects are added, this effect all but disappears for females, and is substantially reduced for males. We conclude that immigrants are negatively selected into occupations with high turnover and that natives were not facing higher probability to exit employment due to immigrants' presence in a certain occupation. Allowing the effect to vary across natives with different levels of education and experience reveals that, young men, educated men and workers in the private sector are adversely affected by the presence of immigrants.

Keywords: Immigration, labor demand and supply, segmented labor markets

JEL Classification: F22, J00, J21, J30, J61

Suggested Citation

Cohen-Goldner, Sarit and Paserman, M. Daniele, Mass Migration to Israel and Natives' Transitions from Employment (September 2004). Available at SSRN: https://ssrn.com/abstract=621043

Sarit Cohen-Goldner

Bar-Ilan University - Department of Economics ( email )

Ramat-Gan, 52900
Israel
+972 3 531 8948 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

M. Daniele Paserman (Contact Author)

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Jerusalem, 91905
Israel
+972 2 588 3365 (Phone)
+972 2 581 6071 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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