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Wage Discrimination across Ethnic Groups: Evidence from Israel

Author

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  • Neuman, Shoshana
  • Silber, Jacques G

Abstract

The authors investigate wage differentials between ethnic groups in Israel, proposing a new methodology and an illustration based on the latest Israeli census. By using separate wage equations for the various occupations, their methodology allows them to decompose the wage differential into three components: one reflecting human capital differences, one reflecting wage discrimination, and a third indicating occupational segregation. The authors find that 70 percent of the wage gap is due to segregation, 26 percent to wage discrimination, and only 4 percent to human capital differences. Evidence is also found for the existence of duality in the Israeli labor market. Copyright 1996 by Oxford University Press.

Suggested Citation

  • Neuman, Shoshana & Silber, Jacques G, 1996. "Wage Discrimination across Ethnic Groups: Evidence from Israel," Economic Inquiry, Western Economic Association International, vol. 34(4), pages 648-661, October.
    • Handle: RePEc:oup:ecinqu:v:34:y:1996:i:4:p:648-61
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    Citations

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    Cited by:

    1. Bhaumik, Sumon K. & Gang, Ira N. & Yun, Myeong-Su, 2017. "Poverty's Deconstruction: Beyond the Visible," IZA Discussion Papers 11160, Institute of Labor Economics (IZA).
    2. Navon, Guy & Tojerow, Ilan, 2006. "The Effects of Rent-Sharing on the Gender Wage Gap in the Israeli Manufacturing Sector," IZA Discussion Papers 2361, Institute of Labor Economics (IZA).
    3. Shoshana Neuman & Ronald L. Oaxaca, 2005. "Wage differentials in the 1990s in Israel: endowments, discrimination, and selectivity," International Journal of Manpower, Emerald Group Publishing Limited, vol. 26(3), pages 217-236, April.
    4. Jairo Guillermo Isaza Castro, 2014. "Occupational segregation, selection effects and gender wage differences: evidence from urban Colombia," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, June.
    5. Polyakova, Evgeniya & Smirnykh, Larisa, 2016. "The earning differential between natives and individuals with immigrant background in Russia: The role of ethnicity," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 43, pages 52-72.
    6. Jean-Louis Arcand & Béatrice D'hombres, 2004. "Racial discrimination in the Brazilian labour market: wage, employment and segregation effects," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(8), pages 1053-1066.
    7. Avni, Shlomit & Filc, Dani & Davidovitch, Nadav, 2015. "The Israeli Medical Association's discourse on health inequity," Social Science & Medicine, Elsevier, vol. 144(C), pages 119-126.
    8. Evgeniya Polyakova & Larisa Smirnykh, 2015. "The Impact of Sectoral Segregation on the Earning Differential between Natives and Immigrants in Russia," HSE Working papers WP BRP 110/EC/2015, National Research University Higher School of Economics.
    9. Gad Levanon & Yaron Raviv, 2007. "Decomposing Wage Gaps between Ethnic Groups: The Case of Israel," Southern Economic Journal, John Wiley & Sons, vol. 73(4), pages 1066-1087, April.
    10. Ibrahim Mohamed Abdalla & Mohammed A. Al‐Waqfi & Nasri Harb & Rafiq H. Hijazi & Taoufik Zoubeidi, 2010. "Labour Policy and Determinants of Employment and Wages in a Developing Economy with Labour Shortage," LABOUR, CEIS, vol. 24(2), pages 163-177, June.
    11. Guy Navon & Ilan Tojerow, 2013. "Does Rent-sharing Profit Female and Male Workers? Evidence from Israeli Matched Employer–Employee Data," LABOUR, CEIS, vol. 27(3), pages 331-349, September.
    12. Muhammad Asali, 2008. "Wage Differentials in Israel: Endowments, Occupational Segregation, Discrimination, and Selectivity," Working Papers 011-08, International School of Economics at TSU, Tbilisi, Republic of Georgia.

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