JEWISH-ARAB WAGE GAP: WHAT ARE THE CAUSES?

Muhammad Asali

Defence and Peace Economics, 2010, vol. 21, issue 4, 367-380

Abstract: Using a panel of cross sections, this study measures wage differentials between Israeli-Arab and Jewish workers between 1991 and 2003. The wage gap is then decomposed into components corresponding to human capital, occupational segregation, selectivity, and a residual (unexplained gap). The study shows large fluctuations in the wage gap, almost doubling in the last decade, reaching 75% in 1999. Because sudden changes in the underlying characteristics of the populations are not likely, a large part of the level and changes in the wage gap were captured by the residual - possibly one of the implications of the ongoing Israeli-Palestinian conflict.

Keywords: Wage gap; Labor-market discrimination; Israeli-Palestinian conflict (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1080/10242694.2010.491716

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