The relationship between moral development and cultural and educational background is examined. Approximately 120 Israeli youth representing different social classes, sex, religious affiliation, and educational experience were interviewed. The youth interviewed included urban middle and lower class students, Kibbutz-born, Youth Aliyah (disadvantaged urban youth educated in the Kibbutz) and Moslem and Christian Arab students. Findings indicated that: (1) the level of moral reasoning of kibbutz-born youth was higher than that of the other groups studied, (2) middle class and Youth Aliyah showed a higher level of moral reasoning than the lower-class samples, (3) the Christian and Moslem Arab middle class samples showed similar levels of moral reasoning to Turkish middle class, Oriental Jewish lower class, and the American lower working class, (4) Moslem girls showed a lower level of moral reasoning than either Moslem boys or Christian Arab girls, and (5) no significant differences in level of moral reasoning were found between male and female in the kibbutz. The conclusion is that since the kibbutz stresses democratic processes, social participation, mutual responsibility, and active decision making from an early age, the degree to which these elements can be found in a society influences the moral development of its members. (Author/KC)