Inequality among the kibbutzim

Using a new longitudinal data-set, we examine the distribution of well-being, and changes in the distribution of well-being, among the Israeli kibbutzim in 1989 and 1990. We examine the theoretical and practical implications of a variety of definitions of consumption, income and wealth of each kibbutz. Although in many cases the mean value of the relevant income or wealth concept is negative, we show that inequality change is ambiguous and welfare is decreasing. Moreover, those kibbutzim with the lowest net worth experienced the greatest deterioration of their net worth.