Working Paper: CEPR ID: DP15151
Authors: Eran Yashiv; Nitsa Kasir Kaliner
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.
Keywords: ethnic minority; human capital; barriers; labor market barriers; occupational choice
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| barriers to integration in employment (J68) | economic outcomes of the Arab minority (J15) |
| increase in barriers to the acquisition of human capital in highly skilled occupations (J24) | economic outcomes of the Arab population (P42) |
| decrease in labor market barriers (F66) | increase in wages for Arab men (J31) |
| increase in barriers in highly skilled occupations (J68) | push towards lower-skilled jobs for Arab men (J68) |