Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216432 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13120
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
ethnic minority
economic outcomes
human capital barriers
labor market barriers
occupational choice
JEL: 
J15
J24
Document Type: 
Working Paper

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