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Russians in Israel. A flood of Immigrants . By: Eleanor Cooper Westlake High School 9 th grade (freshman) April-May 2005. The Soviet Union Comes Crashing Down. The Soviet Union disintegrated in 1989, freeing its citizens. Economic Catastrophe Outdated machinery

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Russians in israel l.jpg

Russians in Israel

A flood of Immigrants

By: Eleanor Cooper

Westlake High School

9th grade (freshman)

April-May 2005


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The Soviet Union Comes Crashing Down

  • The Soviet Union disintegrated in 1989, freeing its citizens.

  • Economic Catastrophe

    • Outdated machinery

    • No market for many Soviet Products

      • Satellite countries had no guaranteed market

      • The Soviet Union had isolated itself from the international market


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…Still Crashing…

  • The labor force was unskilled and unemployed

    • It had only traded with other countries under Soviet control

  • Relatively Undeveloped Infrastructure

  • The economy and government were making their transition from Communism to Democracy

    • No guaranteed source of income, benefits, education with new government

      The people were looking for a way out


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Thesis

Russian Jewish Immigration to Israel has had

negative short-term effect, and an inconclusive long-term effect on the Israeli economy.


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Which World?

  • Three possible models for the Israeli economic reaction to an influx of immigrants

    • The “Perfect World”

    • The “Compromised World”

    • The “Flawed World”


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A Perfect World

  • This model reflects an ideal situation

    • Incorporates the influx of immigrants

      • Creating new jobs in the job sectors the immigrants are skilled in

      • Filling existing jobs

  • Don’t compromise existing jobs

    • Creates huge growth

      • consumption and production levels up

    • Wages fall in all sectors

      • Large pool of skilled workers from which to hire from


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Occupation of Male Native Israelis and Immigrants

*High Paying and Low Paying refer to professional jobs, while Blue Collar refers to unskilled workers.


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  • There are more high-paid immigrant professionals than Israeli ones

  • There are less unskilled (Blue Collar) immigrant workers than native Israeli ones

    • Larger pool from which to choose from

      • Lower wages


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A Compromised World

  • Some immigrants’ skills are not of value to the Israeli economy

    • Other jobs available in lower sectors to accommodate them

    • Down-grading or underemployment occurs

      • Market less efficient

      • Smaller economic growth than 1st model

      • Wages in less-skilled sector fall farther than 1st model

      • Wages in high-skilled sector remains constant

        • Not an even distribution of workers

          • Constrained to less-skilled sectors


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Unemployment Ratesof Immigrants and Native Israelis


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Participation Rates of Immigrants and Native Israelis


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  • Immigrants unemployment rate and participation rate is significantly higher than Native Israeli unemployment rate

  • The unemployment rate drops and the participation rate rises as the immigrants assimilate

  • Decreases in unemployment for Immigrants don’t increase unemployment for Native Israelis

    • Economy expanding to incorporate them


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A Flawed World

  • Immigrants skills are of no value to the Israeli Economy

    • No jobs available, no jobs created

      • Mass state of unemployment

      • Skills unmarketable

      • Economy too rigid

    • Depresses Economy

      • Government Subsidization

    • Production falls

    • Consumption increases

    • Wages remain constant due to rigidity


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GNP and Consumption Growth Rates per Capita

The GNP growth rate remains relatively constant while the Consumption growth rate increases


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Which World?

  • The Israeli economy best fits the “Compromised World”

    • Unemployment rates increase and than decrease as immigrants assimilate

      • Doesn’t affect Native Israeli employment rates

    • Though average skill level of Russian Immigrants is higher than Native Israeli, it doesn’t mean they all get jobs corresponding to their skill level.


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BIBLIOGRAPHY

  • Brinkley, Joel. “For New Soviet Immigrants in Insrael, Hard Times.”

    The NewYork Times. 9, March 1991: 1,7.ProQuest Historical Newspapers. The New York Times. http://proquest.umi.com.content.lib.utexas.edu:2048/pqdweb?index=6&did=115752349&SrchMode=1&sid=2&Fmt=10&VInst=PROD&VType=PQD&RQT=309&VName=HNP&TS=1105297370&clientId=13642

  • “Statistics.” Ministry of Immigrant Absorption.2004. http://www.moia.gov.il/english/netunim/stats1.htm


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BIBLIOGRAPHY

  • “Percent of 1990+ Immigrants in Localities Numbering 100 000+ Residents.”Central Bureau of Statistics. 31, Dec. 2003. http://www1.cbs.gov.il/shnaton55/dia02_10e.shtml

  • Bank of Israel Research Department. One Million Immigrants- An Absorption Program. Jerusalem: Ahva Press, 1991.


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BIBLIOGRAPHY

  • Cohen, Sarit, and Chang-Tai Hsieh. “Macroeconomic and Labor Market Impact of Russian Immigration to Israel.”2002.

  • Eckstein, Zvi, and Y Weiss. “On the Wage Growth of Immigrants: Israel 1990-2000.” Journal of European Economic Association. 2(4) (2004): 665-695.


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BIBLIOGRAPHY

  • Eckstein, Zvi, and Y. Weiss. “The Integration of Immigrants from the Former Soviet Union into the Israeli Labor Market.” The Israeli Economy, 1985-1998: From Government Intervention to Market Economics, Essays in Memory of Prof. Michael Bruno. MIT Press, 2002.

  • “Immigration.” Jewish Virtual Library.2004. The American-Israeli Cooperative Enterprise. http://www.jewishvirtuallibrary.org/jsource/Immigration/immigtoc.html


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BIBLIOGRAPHY

  • Greenberg, Joel. “No Milk or Honey for Israel’s Emigres.” The New York Times. 1, March 1992:8.ProQuest Historical Newspapers . The New York Times. http://proquest.umi.com.content.lib.utexas.edu:2048/pqdweb?index=18&did=116068339&SrchMode=1&sid=2&Fmt=10&VInst=PROD&VType=PQD&RQT=309&VName=HNP&TS=1105297784&clientId=13642

  • Montgomery, Leland. “The Russians are Coming.” Financial World. 15, Oct. 1991: 44.Financial World. http://web4.infotrac.galegroup.com/itw/infomark/122/630/61146675w4/purl=rc1_K12G_0_A11320680&dyn=3!xrn_1_0_A11320680?sw_aep=tlc139094912


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THE END


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