Immigration, State Support, and the Economic Well-Being of the Elderly in Israel

Abstract

The economic well-being of the elderly largely reflects their cumulative achievements in the labor market and the success of welfare policy in reducing income gaps and inequality. This article focuses on the effect of immigration, especially its timing along the life course, on economic well-being later in life. Using data from a nationally representative survey of the elderly population in Israel, we found that immigrants entering Israel at a young age were able not only to accumulate sufficient labor force experience but also to secure the types of employment that grant high levels of benefits. Thus, they could achieve economic independence by old age. The findings underscore the role of the state in compensating those who immigrated at older ages for their inability to accumulate market resources by raising them above the poverty line.