This paper sets out to evaluate changes over time in the economic performance of different settler groups-as defined by ethnicity and nativityon Israel's family farms in the moshav, the smallholding cooperative village. A moshav (plural moshavim) is primarily a multipurpose cooperative society with limited liability, established to promote farming as the major occupation and source of living of its members. The nuclear family is the basic social and economic unit, but the various households-of which there are on the average 70 in a village-are bound together by mutual solidarity and aid, as well as by common agricultural, financial, supply, marketing, and other services. The village economy differs from place to place, according to general economic considerations and local conditions; in each moshav, however, an equitable division of the means of production (chiefly in respect of public capital, the size and quality of plots, and water resources) is maintained. Besides being an agricultural cooperative and upholding a specific way of life, the moshav constitutes a unit of local government with municipal duties. The authority over this and over the cooperative function is vested in the general assembly of the adult members, which decides upon matters of principle and lays down the general policy. The implementation of this policy is entrusted to the village council, assisted by various elected committees and a salaried administrative and professional staff. The council is chosen by the assembly in free, secret, and universal elections. The two constitute, in fact, the executive and the legislative body, respectively; and their separation, together with the principle of democratic representation and responsibility, is an integral part of the moshav movement's value system and constitution. The moshav type of village was originally created in 1921, and by the