1. Russians in Israel A flood of Immigrants By: Eleanor Cooper
Westlake High School
9th grade (freshman)
April-May 2005

2. 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Outdated machinery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

3. The people were looking for a way out
…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

4. Russian Jewish Immigration to Israel has had
Thesis
Russian Jewish Immigration to Israel has had
negative short-term effect, and an inconclusive long-term effect on the Israeli economy.

5. Which World?
Three possible models for the Israeli economic reaction to an influx of immigrants
The “Perfect World”
The “Compromised World”
The “Flawed World”

6. 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

7. Occupation of Male Native Israelis and Immigrants
High Paying*
Low Paying*
Blue Collar*
Israelis
1991
18.5%
12.9%
68.6%
USSR
Immigrants
58.6%
12.2%
29.2%
*High Paying and Low Paying refer to professional jobs, while Blue Collar refers to unskilled workers.

8. 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

9. 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

10. Unemployment Rates of Immigrants and Native Israelis
1990
1991
1992
1993
1994
1995
1996
1997
men
Native
israeli
7.5%
7.1%
7.7%
6.7%
5.2%
4.8%
5.8%
Russian
immigrant
40.7%
28.5%
19.9%
15.0%
9.0%
7.0%
women
11.0%
11.5%
10.0%
9.1%
7.4%
6.8%
52.9%
50.3%
38.4%
21.5%
17.6%
11.8%
10.4%

11. Participation Rates of Immigrants and Native Israelis
1990
1991
1992
1993
1994
1995
1996
1997
men
Native Israeli
62.6%
62.7%
62.2%
63.2%
63.1%
64.2%
63.3%
Immigrant
32.0%
57.3%
63.9%
66.0%
65.4%
63.8%
62.8%
women
47.9%
48.2%
48.8%
49.7%
51.2%
52.7%
52.9%
53.0%
19.3%
36.7%
45.1%
47.4%
48.7%
46.3%
46.9%
47.8%

12. 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

13. 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

14. GNP and Consumption Growth Rates per Capita
Years
GNP
Consumption
2.3%
2.8%
1.9%
3.0%
2.2%
3.7%
The GNP growth rate remains relatively constant while the Consumption growth rate increases

15. 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.

16. 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.
“Statistics.” Ministry of Immigrant Absorption

17. BIBLIOGRAPHY
“Percent of Immigrants in Localities Numbering Residents.”Central Bureau of Statistics. 31, Dec
Bank of Israel Research Department. One Million Immigrants- An Absorption Program. Jerusalem: Ahva Press, 1991.

18. 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 ” Journal of European Economic Association. 2(4) (2004):

19. BIBLIOGRAPHY
Eckstein, Zvi, and Y. Weiss. “The Integration of Immigrants from the Former Soviet Union into the Israeli Labor Market.” The Israeli Economy, : From Government Intervention to Market Economics, Essays in Memory of Prof. Michael Bruno. MIT Press, 2002.
“Immigration.” Jewish Virtual Library The American-Israeli Cooperative Enterprise.

20. 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.
Montgomery, Leland. “The Russians are Coming.” Financial World. 15, Oct. 1991: 44.Financial World.

21. THE END