Miki Malul

The Optimal Policy Combination of the Minimum Wage and the Earned Income Tax Credit

Abstract This paper evaluates the consequences of minimum wage (MW) and earned income tax credit (EITC) in a model with heterogeneous costs of investment in human capital. Our model studies the effects of a MW and an EITC on employment, productivity, and total output for two types of groups: those with a low cost of acquiring human capital and a long horizon of earnings (Type Ys); and those with a high cost of acquiring human capital and a short horizon of earnings (Type Os). We assume that Type Ys consider investing in human capital while Type Os have a certain predetermined level of human capital and do not consider changing it. Our model suggests that a government might consider imposing a MW exclusively for Type Y individuals and an EITC exclusively for Type O individuals. Some of the best effects of each policy would therefore be obtained and some of the worst consequences would be avoided.

The Economic Efficiency of the Tourism Industry: A Global Comparison

Although the measurement of efficiency and productivity in the tourism industry at the micro level has been the subject of considerable research in recent years, there has been little research at the macro level. Using data envelopment analysis, this paper analyses the efficiency of the tourism sector in 105 countries, including 34 developed and 71 developing countries. It finds that globalization and accessibility are critical for the efficiency of the tourism sector in developing countries and that labour productivity may be a good proxy for the efficiency of the aggregate tourism industry.

The Gap between Free Market and Social Optimum in the Location Decision of Economic Activity

This article presents a simplified model for comparison of the spatial distribution (core—periphery) of economic activity resulting from free market conditions, with the distribution that would lead to a social optimum. It further examines the public policy measures required to lead the economy towards the optimal distribution. Simulations are conducted to illustrate the mechanism of intervention of public policy and to test the feasibility of various measures. An important conclusion is that public investment in the creation of competitive ability in the periphery may provide the solution to market failure and therefore lead to the achievement of a social optimum greater than the free market optimum. Another preliminary conclusion is that public policy should consider a combination of measures (such as improving both regional infrastructure and the quality of the labour force), since focusing on a single measure may not be sufficient to achieve a social optimum.

Costs of Mistrust between Ethnic Majority and Minorities: Evidence from Israel

Abstract Trust and ethnic diversity are important variables that may impact and explain different economic decisions. This paper presents theoretical models accompanied by a survey that deals with the relation between mistrust and risky economic activity (e.g., the postponement of receiving and paying for a risky asset). Using the theoretical models and surveys as a basis, we suggest that subjective discount rates and bids for a lottery can be used to measure levels of mistrust. The surveys are used to measure the level of mistrust between the Israeli majority (Jews) and minority groups (Israeli Arabs, Bedouins, and Palestinians), and between Israeli Jews from different districts. Based on the survey results we demonstrate the theoretical implications of the effect of mistrust (MT) on economic growth and resource allocation between the majority and minorities. We conclude that MT leads to inefficient resource allocation, which subsequently leads to low economic growth rates.

Linguistic gender marking gap and female staffing at MNC’s

This paper presents the impact of the linguistic gender marking gap on expatriate female staffing decisions in a multinational company. Transaction cost theory postulates that due to cultural differences, integration between parent and subsidiary companies becomes complex and costly. However, staffing from parent organisations could be helpful to minimise the cultural conflict by establishing better control and hence reducing the transaction cost. Language is considered as one of the major components that shapes culture, and linguistic gender marking gap could cause a difference in attitude towards male and female staff members from parent companies. Due to the nature of linguistic structures, which are embedded in ancestral culture and have a cognitive effect on speakers, the gap has two levels. The first is the gap between home and host countries’ languages. The second is between the official and informal languages used by the headquarters and the subsidiary. The analytical model, using an innovative gender gap variable, supports two carefully developed propositions, that the success of expatriate staffing at managerial level depends on the linguistic gender marking gap between home and host country, and that use of organisational language in subsidiaries reduces the linguistic gender marking gap between them.

The Price of a Neglected Zoonosis: Case-Control Study to Estimate Healthcare Utilization Costs of Human Brucellosis

Human brucellosis has reemerged as a serious public health threat to the Bedouin population of southern Israel in recent years. Little is known about its economic implications derived from elevated healthcare utilization (HCU). Our objective was to estimate the HCU costs associated with human brucellosis from the insurer perspective. A case-control retrospective study was conducted among Clalit Health Services (CHS) enrollees. Brucellosis cases were defined as individuals that were diagnosed with brucellosis at the Clinical Microbiology Laboratory of Soroka University Medical Center in the 2010–2012 period (n = 470). Control subjects were randomly selected and matched 1:3 by age, sex, clinic, and primary physician (n = 1,410). HCU data, demographic characteristics and comorbidities were obtained from CHS computerized database. Mean±SD age of the brucellosis cases was 26.6±17.6 years. 63% were male and 85% were Bedouins. No significant difference in Charlson comorbidity index was found between brucellosis cases and controls (0.41 vs. 0.45, respectively, P = 0.391). Before diagnosis (baseline), the average total annual HCU cost of brucellosis cases was slightly yet significantly higher than that of the control group (

The Role of Employment Protection During An Exogenous Shock To An Economy

439 vs.

The savings crisis and China's future growth

382, P<0.05), however, no significant differences were found at baseline in the predominant components of HCU, i.e. hospitalizations, diagnostic procedures, and medications. At the year following diagnosis, the average total annual HCU costs of brucellosis cases was significantly higher than that of controls (

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1,327 vs.

Does greater accessibility to higher education reduce wage inequality? The case of the Arab minority in Israel

380, respectively, P<0.001). Most of the difference stems from 7.9 times higher hospitalization costs (p<0.001). Additional elevated costs were 3.6 times higher laboratory tests (P<0.001), 2.8 times higher emergency room visits (P<0.001), 1.8 times higher medication (P<0.001) and 1.3 times higher diagnostic procedures (P<0.001). We conclude that human brucellosis is associated with elevated HCU costs. Considering these results in cost-effective analyses may be crucial for both reducing health inequities and optimal allocation of health systems’ scarce resources.