On the dynamic effects of using hired labor in the Kibbutz—theory and case studies

This study analyzes the effect of employing hired labor in the Kibbutz. The main motivations are the premises contained in the newly emerging “The Change” or “The New Kibbutz” approach. Using the traditional LMF model with heterogeneous labor, we show that, although using hired labor will improve the economic situation of the Kibbutz in the short-run, in the long-run Kibbutz membership will consist of only those types of labor to which the “Self Labor” principle applies.