Since its establishment in 1948 Israel has depended to a large extent on immigration ... decided upon an economic incentive program to stimulate remigration.
The Effect of Economic Incentives on Return Migration BY N I N A T O R E N
The prirpose oj this study is to U S S ~ S Jthe impact 01 economic inccwives grunted to Israeli returti migrants during 1968-1970. This is done by analyzing available census figures as well as data gathered in interviews with a sample of return migrants. The sesrrlts slroiv that the iticcwtive program had no efect and did not achieve its purpose to increase the number of returti rnigrarits. The policy implications indicated by this analysis are discussed.
INTRODUCTION
Since its establishment in 1948 Israel has depended to a large extent on immigration for building-up its human resources. Hence, the attraction and absorption of immigrants have alway been among the primary goals of public policy which frequently find expression in proclamations such as the following: 'Today, more than ever before, the State is geared to absorb newcomers. Our citizens and our institutions are alive to the essentiality that objective, ;ind are prepared to invest all the good-will, the finances and endeavor that they can muster to ease and hasten its attainment. The gates of Israel stand wide open. Isracl is ready and welcomes its new citizens'(6). Eniigration, on the other hand, is widely condemned and looked upon as unpatriotic. This attitutfc is reflected in the value-laden label attached to emigrants w h o are called Yudint, literally - 'those who go down,' whereas immigrants are described as Olitn 'those who come up.' I t is \.cry difficult to determine the rate of emigration from Israel since on leaving the country Israelis usually d o not declare their intention to eniigriite because of the strong >oci;il disipproval of this behavior. Furthermore, there is no official definition o f the number 01' years after which a n Israeli living abroad is considered a Yord(someone who 'ILciit down' permanently). Thus, there is no clear distinction bctwcen cmigrnnts and those who h t a y abroad for specific purposes, such as, tourism, study or business, 2nd who usually return after a predeterinined period of time. The C'entrJ Bureau of Statistics in Israel classifies as noii-returns (or potential emigrants) those ivho h a w n o t returned after two years since departure. According to this clefinition there are at present o \ e r 200,000 such persons (holding Israeli citizenship) li\.i:)g ahi-o;id (9).Tlic great majority of t h e x Israelis i.; concentrated in the U.S. and 3
few other Western developed countries, notably, Britain, Canada and France. In terms of human capital they provide a valuable potential source of highly educated and trained man-power (5, 11). In its efforts to recover a part of these scarce human resources, the Israeli Government decided upon an economic incentive program to stimulate remigration. It is the purpose of this study to assess the effectiveness of this program. This will be done in two ways: firstly, by using relevant statistical data we will attempt to determine whether any changes have occurred in the rate of returnees during the inventive period; secondly, by analyzing data obtained by means of interview with a sample of return migrants, we will examine the subjective significance of the incentives and their influence o n the individual's decision to remigrate.
T H E I N C E N T I V E P R O G R A M TO E N C O U R A G E R E T U R N M I G R A T I O N
Among the first tasks of the Ministry of Immigrant Absorption established in 1968, was the implementation of the Government's policy in respect with remigrants, officially termed 'returning residents.' The objective of this policy was to motivate Israeli citizens who have been living abroad for extended periods of time to return to their homeland. The official decision, from May ZOth, 1968, consisted of a list of pecuniary incentives, or 'special benefits,' to be granted to a particular group of return migrants for a limited period of time. This group includes citizens who left Israel between July 14th, 1952 (the date on which the Law of Nationality wasenacted),[l] and April lst., 1964; and, who were to return starting April 1st. 1968,and not later than December 31st, 1970. Consequently, persons who were eligible for the special benefits, were Israeli nationals who have resided abroad for a minimum of four and a maximum of eighteen years. Also eligible were individuals who emigrated with their parents as children or were born to Israeli parents abroad.[2] The main provisions of the special incentives for returning residents (as delined above) are : a . Trc\el eupcnses: returning residents may lipply for long-term, interest-free loans provided by the Jeuish Agcncy. to coLer sea or air fare to Israel, and for shipping the family's belongings. b. Housing: returning residents are eligible for a mortgage on special term for the Purchase of itii apartment, grantcd by the Ministery of Immigrant Absorption. The mortgage is extended for 20 years at 9 " " intercht per annum, not linked to the cost of living index. I
