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

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  • Neuman, Shoshana
  • Oaxaca, Ronald L

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.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4709.

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Date of creation: Oct 2004
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Handle: RePEc:cpr:ceprdp:4709

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Keywords: age; education; employment spells; ethnicity; gender; marital status; non-employment;

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Cited by:
  1. Muhammad Asali, 2008. "Wage Differentials in Israel: Endowments, Occupational Segregation, Discrimination, and Selectivity ," Working Papers 011-08, International School of Economics at TSU, Tbilisi, Republic of Georgia.
  2. BALDWIN Marjorie L. & CHOE Chung, 2010. "New Estimates of Disability-Related Wage Discrimination with Controls for Job Demands," CEPS/INSTEAD Working Paper Series 2010-14, CEPS/INSTEAD.
  3. Thomas Grandner & Dieter Gstach, 2012. "Decomposing wage discrimination in Germany and Austria with counterfactual densities," Department of Economics Working Papers wuwp145, Vienna University of Economics, Department of Economics.
  4. Kohler, Pierre, 2012. "Three essays on the economic and cultural integration of migrants in Switzerland: putting into perspective the influence of economic discrimination and of host society culture," MPRA Paper 38129, University Library of Munich, Germany.
  5. Ilan Tojerow & Khalid Sekkat, 2005. "Country profile: Israel. Labour and human resource developments," ULB Institutional Repository 2013/8829, ULB -- Universite Libre de Bruxelles.
  6. Pierre Kohler, 2012. "The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben," IHEID Working Papers 08-2012, Economics Section, The Graduate Institute of International Studies.

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