Maor Milgrom: Income Inequality in Israel

Maor Milgrom is working on two projects. First, he is examining the long-term costs of being laid off from a shrinking industry in Israel, and how do these costs vary by ethnic group and geographic location. A key question is whether the costs are higher for workers displaced from low-tech manufacturing industries exposed to international trade. These shrinking industries are concentrated in rural areas of Israel which offer fewer employment opportunities, thus the displaced workers might be forced to switch industries or relocate to find employment. To answer these questions, he uses administrative data from the National Insurance Institute to track the earnings and employment history of Israeli workers. In a joint project with Diego Verdugo (who is also supported by the Stone Project), they use high quality administrate data from Chile to estimate spillover effects of the minimum wage, as well as its effects on employment and local prices.

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