Skills distribution and inequality in the Kibbutz

Description: The following thesis aims to analyze the effects of skills distribution on the level of equality in the context of the Israeli kibbutz movement, a group of communities that live under the principle of equal sharing. Using a simple theoretical framework I find that, for kibbutz with a low threshold level of wealth, the proportion of high productivity individuals has a positive effect on the level of equality. That is, an increase in the proportion of highly productive individuals allows the kibbutz to sustain equality, whereas, the departure of productive individuals might force the kibbutz to relax the principle of equality, and adopt a differentiated compensation scheme to deter the exit of high productivity individuals.

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