Founded in 1971 in honor of David Horowitz, former Governor of the Bank of Israel and architect of Israel's plan for financial assistance to developing nations, this institute encourages research on issues relating to social and economic development.

Three David Horowitz Doctoral Fellowships are awarded annually to scholars writing dissertations in social sciences at Israeli universities. The annual competition for the fellowships is announced in the winter semester of each year and applications are accepted in April-May each year.

The institute also encourages research on the general issues of social stratification and inequality. Mini-grants supporting research on related topics are awarded annually to scholars and students working in related areas. Their work is presented in the annual David Horowitz Workshop on Inequality held in January. The institute also promotes international cooperation and exchange within its field of expertise.