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Wage Differentials in the 1990s in Israel: Endowments, Discrimination, and Selectivity

Author

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  • Neuman, Shoshana

    (Bar-Ilan University)

  • Oaxaca, Ronald L.

    (University of Arizona)

Abstract

The purpose of this paper is to investigate wage structures of professional workers in the Israeli labor market, using data from the most recent 1995 Census and correcting for selectivity at the stage of entrance into the occupation. The sample of professionals is decomposed into several subsamples: men and women and within each gender a distinction is made between Easterners (origination from Asian/African countries) and Westerners (from European/American countries of origin). Comparisons by gender and ethnicity can then be made. Characteristics (endowments) and wage structures of the four groups are presented. Wage equations include the Inverse of Mill's Ratio as a regressor to correct for selection into the professional occupations. Wage differences are then examined and decomposed into 3 components: Endowments (human capital), discrimination and selectivity. Following the methodology presented in Neuman and Oaxaca (2004), four alternative decompositions are suggested and discussed.

Suggested Citation

  • Neuman, Shoshana & Oaxaca, Ronald L., 2004. "Wage Differentials in the 1990s in Israel: Endowments, Discrimination, and Selectivity," IZA Discussion Papers 1362, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1362
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    Cited by:

    1. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.
    2. Thomas Grandner & Dieter Gstach, 2012. "Decomposing wage discrimination in Germany and Austria with counterfactual densities," Department of Economics Working Papers wuwp145, Vienna University of Economics and Business, Department of Economics.
    3. BALDWIN Marjorie L. & CHOE Chung, 2010. "New Estimates of Disability-Related Wage Discrimination with Controls for Job Demands," LISER Working Paper Series 2010-14, Luxembourg Institute of Socio-Economic Research (LISER).
    4. Constant, Amelie F. & Gataullina, Liliya & Zimmermann, Klaus F., 2009. "Ethnosizing immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 274-287, March.
    5. Ilan Tojerow & Khalid Sekkat, 2005. "Country profile: Israel. Labour and human resource developments," ULB Institutional Repository 2013/8829, ULB -- Universite Libre de Bruxelles.
    6. Flávio Kauê Fiuza-Moura & Katy Maia & Solange Cassia Inforzato de Souza & Magno Rogério Gomes & Paulo Reis Mourão, 2019. "The luck of being of the right gender and color: a detailed discussion about the wage gaps in the Brazilian manufacturing industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1275-1300, May.
    7. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.
    8. Pierre Kohler, 2012. "The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben," IHEID Working Papers 08-2012, Economics Section, The Graduate Institute of International Studies.
    9. Kohler, Pierre, 2012. "Three essays on the economic and cultural integration of migrants in Switzerland: putting into perspective the influence of economic discrimination and of host society culture," MPRA Paper 38129, University Library of Munich, Germany.
    10. 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.
    11. Elisabeth Cudeville & Leman Yonca Gurbuzer, 2007. "Gender wage discrimination in the Turkish labor market," Post-Print halshs-00188745, HAL.

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    More about this item

    Keywords

    Israel; endowments; discrimination; selectivity; gender; ethnicity;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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