Econometrica: May 2014, Volume 82, Issue 3

Residential Location, Work Location, and Labor Market Outcomes of Immigrants in Israel

https://doi.org/10.3982/ECTA10029
p. 995-1054

Moshe Buchinsky, Chemi Gotlibovski, Osnat Lifshitz

We develop and estimate a comprehensive dynamic programming (DP) model for the joint decisions of residential location, employment location, occupational choices, and labor market outcomes. We use data on immigrants from the former Soviet Union (FSU). We provide an extensive empirical evaluation of policies that have been designed to affect the residential and employment location decisions of the migrant population. The results shed new, and important, light on several issues regarding this group of immigrants. We find large regional differences in wages for the white‐collar workers, but only little differences for the blue‐collar workers.

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