טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentPenn Nadav
SubjectSpatially Segmented Labor Market: Kiryat Gat's Young Adults
Employmen: 15 years after Inauguration of the
Intel Fab
DepartmentDepartment of Architecture and Town Planning
Supervisor Dr. Meirav Aharon
Full Thesis text - in Hebrew Full thesis text - Hebrew Version


Abstract

This study explores the effects on local young adults of regional economic development-based industrial agglomeration around transnational corporations (TNC). Specifically, it considers how peripheral young adults (ages 20-35) have contended with the new local labor market created by the arrival of a TNC in the form of a high-tech fabrication plant. Kiryat Gat, an impoverished city in southern Israel, was selected as a case study for this research due to the disparity between the agglomeration of industries around the TNC and the socio-economic stagnation of the city and its inhabitants.

In the course of this research, we explored the behavior of a local (confined) labor market and the manner in which local’s function within it. The mixed-methods methodology employed combined statistical analysis of surveys and ethnographic fieldwork in and about the Local Youth Center: a public institution engaged in consulting and job-placement. Our findings indicate that the new local labor market is spatially dual in character, with spatial location determining outcomes - i.e., with primary (‘good’) jobs going to outsiders and secondary (‘bad’) jobs being filled by locals. The ethnographic findings reveal why the structure of the local labor market reproduces itself and how it does so through employees, employers, and public organizations. Furthermore, it shows why locals who do succeed in joining the primary labor market must do so through the national labor market.

The study suggests an alternative paradigm for research concerning economic development and shows that the mere existence of agglomeration (i.e., economic affluence) is by no means an assurance of prosperity for local citizens.