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Wage Discrimination across Ethnic Groups: Evidence from Israel

Shoshana Neuman () and Jacques Silber ()

Economic Inquiry, 1996, vol. 34, issue 4, 648-61

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.

Date: 1996
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