• Corpus ID: 16841493

Macroeconomic and Labor Market Impact of Russian Immigration in Israel

@inproceedings{CohenGoldner2001MacroeconomicAL,
  title={Macroeconomic and Labor Market Impact of Russian Immigration in Israel},
  author={Sarit Cohen-Goldner and Chang-tai Hsieh},
  year={2001}
}
From the end of 1989 to 1997, over 710 thousand Russian Jews emigrated to Israel, increasing Israel-s working-age population by 15 percent. This paper argues that a canonical one-sector neoclassical growth model explains both the short run and the medium run response of Israel,s economy to this shock. Specifically, we show that average effective wages of native Israelis fell and the return to capital increased during the height of the influx in 1990 and 1991. By 1997 however, both average wages… 

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