Was the increase in income inequality in the US due to permanent shocks or merely to anincrease in the variance of transitory shocks? The implications for consumption and welfaredepend crucially on the answer to this question. We use CEX repeated cross-section data onconsumption and income to...

This paper explores how cross-sectional data can be exploited jointly with longitudinal data,in order to increase estimation efficiency while properly tackling the potential bias due tounobserved individual characteristics. We propose an innovative procedure and we show itsimplementation by...

An extensive body of research related to immigrants in a variety of countries has documented a "healthy immigrant effect" (HIE). When immigrants arrive in the host country they are healthier than comparable native populations, but their health status may deteriorate with additional years in the...

This paper analyzes the Hebrew language proficiency, probability of employment, and labor market earnings of immigrants in Israel. It uses the 2010/11 Immigrant Absorption Survey conducted by the Israeli Central Bureau of Statistics. Unique features of the analysis include the study of...

We study the effect of parental job loss on child school dropout in developing countries. We focus on Palestinian households living in the Occupied Palestinian Territories and having the household head employed in Israel during the Second Intifada (2000-2006). We exploit quarterly variation in...

This paper considers the policy options of the West Bank and Gaza (WBG) with respect to trade and the exports of labor services. It concludes that i) a non-discriminatory trade policy (NDTP) is unambiguously superior to an FTA with Israel; ii) the WBG should pursue a NDTP with all its neighbors,...

Work of low-skilled migrant workers from developing countries in developed economies is a growing phenomenon and a key political and economic issue. An extensive literature has found (for the most part) that these workers come from the lower part of the skill distribution. This paper revisits...

In many countries, college-bound high school seniors must pass a test or series of tests. In Israel, this requirement is known as the ?Bagrut?, or matriculation certificate, obtained by passing a series of subject tests. In spite of the Bagrut?s value, Israeli society is marked by vast...

Do government provided training programs benefit the participants and the society? We address this question in the context of female immigrants who first learn the new language and then choose between working or attending government provided training. Although theoretically training may have...

This paper develops a descriptive methodology for the analysis of wage growth of immigrants, based on human capital theory. The sources of the wage growth are: (i) the rise of the return to imported human capital; (ii) the impact of accumulated experience in the host country; and, (iii) the...