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The Economic Outcomes of an Ethnic Minority: The Role of Barriers

Author

Listed:
  • Kasir, Nitsa Kaliner

    (Haredi Institute for Policy Studies)

  • Yashiv, Eran

    (Tel Aviv University)

Abstract

The Arab population in Israel constitutes an ethnic minority, at around 20% of the population. The economy of this minority is characterized by inferior outcomes relative to the Jewish majority by all indicators, including employment, wages, occupational status, social welfare, education, and housing. This paper reviews key data facts and presents a model of barriers to integration facing Arabs in Israel, taking it to the data. The empirical analysis, based on a general equilibrium model of occupational choice with optimizing agents and barriers, points to an increase over time in barriers to the acquisition of human capital in highly skilled occupations, and, concurrently, a reduction in labor market barriers in all occupations. The analysis offers insights relevant to other developed economies with large ethnic minorities.

Suggested Citation

  • Kasir, Nitsa Kaliner & Yashiv, Eran, 2020. "The Economic Outcomes of an Ethnic Minority: The Role of Barriers," IZA Discussion Papers 13120, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13120
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    References listed on IDEAS

    as
    1. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    2. Revital Bar & Asaf Zussman, 2017. "Customer Discrimination: Evidence from Israel," Journal of Labor Economics, University of Chicago Press, vol. 35(4), pages 1031-1059.
    3. Eran Yashiv & Nitsa Kasir (Kaliner), 2011. "Patterns of Labor Force Participation Among Israeli Arabs," Israel Economic Review, Bank of Israel, vol. 9(1), pages 53-101.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    ethnic minority; economic outcomes; human capital barriers; labor market barriers; occupational choice;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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