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

Shoshana Neuman () and Ronald L. Oaxaca

No 4709, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The purpose of this Paper is to investigate wage structures of professional workers in the Israeli labour 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 (originating 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 three components: endowments (human capital), discrimination and selectivity. Following the methodology presented in Neuman and Oaxaca (2004), four alternative decompositions are suggested and discussed.

Keywords: age; education; employment spells; ethnicity; gender; marital status; non-employment (search for similar items in EconPapers)
JEL-codes: J12 J15 J16 J21 J22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa, nep-edu, nep-lab and nep-ltv
Date: 2004-10

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