The Effect of the Immigration of Soviet Jews to Israel on Israel's Economy and Human Resources

Abstract

This thesis investigates the expected effects of the 1990s immigration wave of Jews from the former USSR to Israel in terms of the economic and social aspects. The influx of some 500,000 immigrants has incremented Israel's population by some 10 percent in three years. The immigrants' human capital is considered exceptionally high in educational and occupational terms. It can give Israel a labor force of unparalleled quality assuming it will not be wasted. The Israeli economic structure is heavily regulated and lacks incentives for entrepreneurialism. The challenge facing Israel is to transform its economic political and social structure so it is geared toward harnessing the special opportunity accorded by the immigrants. In the fast changing global market, capitalizing on the immigrants characteristics is a key for Israel's success. The immigrants pose a burden as well in the form of public debt to be incurred by the veteran population in the near future for their successful assimilation. Israel's ability to find the right approach to their absorption depends on its ability to forge a strategic vision for the future and follow it to implementation.... Immigration, Israel, Jews, Economy, Human Resources, Strategy, Vision.