IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-16-00482.html

Institutional versus labor market discrimination: The case of Israeli Arabs

Author

Listed:
  • Gil Epstein

    (Bar Ilan University, Israel, CReAM, London and IZA, Bonn)

  • Dalit Gafni

    (The College of Management, Israel)

  • Erez Siniver

    (The College of Management, Israel)

Abstract

Economic outcomes are compared between Jewish and Arab university graduates in Israel. A unique dataset is used which includes all individuals who graduated with a first degree from universities and colleges in Israel during the period 1995-2008. The findings show that the wage gap between Jewish men and Arab men is a result of differences in skills that the workers bring to the labor market rather than racial discrimination against Arab men. Thus, there is no wage gap between Jewish men and Arab men with the same skill levels and human capital. In contrast, among women there exist wage gaps that are the result of statistical discrimination. The wage gap between Israeli Jewish women and Israeli Arab women with psychometric entrance score of 600 disappears after five years in the labor market. The difference in average psychometric entrance test scores between Israeli Arabs and Israeli Jews tends to indicate the existence of institutional discrimination in the allocation of public investment in education as opposed to labor market discrimination.

Suggested Citation

  • Gil Epstein & Dalit Gafni & Erez Siniver, 2016. "Institutional versus labor market discrimination: The case of Israeli Arabs," Economics Bulletin, AccessEcon, vol. 36(3), pages 1670-1685.
    • Handle: RePEc:ebl:ecbull:eb-16-00482
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I3-P163.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
    2. Kevin Lang & Michael Manove, 2011. "Education and Labor Market Discrimination," American Economic Review, American Economic Association, vol. 101(4), pages 1467-1496, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lippens, Louis & Baert, Stijn & Ghekiere, Abel & Verhaeghe, Pieter-Paul & Derous, Eva, 2020. "Is labour market discrimination against ethnic minorities better explained by taste or statistics? A systematic review of the empirical evidence," GLO Discussion Paper Series 615, Global Labor Organization (GLO).
    2. Veronese, Guido & Pepe, Alessandro & Dagdukee, Jamal & Yaghi, Shaher, 2018. "Teaching in conflict settings: Dimensions of subjective wellbeing in Arab teachers living in Israel and Palestine," International Journal of Educational Development, Elsevier, vol. 61(C), pages 16-26.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Javier Cano-Urbina & Patrick L. Mason, 2016. "Acculturation and the labor market in Mexico," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-29, December.
    2. Martin Nordin & Dan‐Olof Rooth, 2009. "The Ethnic Employment and Income Gap in Sweden: Is Skill or Labor Market Discrimination the Explanation?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(3), pages 487-510, September.
    3. Daniel B. Jones & Werner Troesken & Randall Walsh, 2012. "A Poll Tax by any Other Name: The Political Economy of Disenfranchisement," NBER Working Papers 18612, National Bureau of Economic Research, Inc.
    4. Romain Aeberhardt & Élise Coudin & Roland Rathelot, 2017. "The heterogeneity of ethnic employment gaps," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 307-337, January.
    5. Lin, Dajun & Lutter, Randall & Ruhm, Christopher J., 2018. "Cognitive performance and labour market outcomes," Labour Economics, Elsevier, vol. 51(C), pages 121-135.
    6. Gil S. Epstein & Dalit Gafni & Erez Siniver, 2014. "Even Education and Experience Has Its Limits: Closing the Wage Gap," Working Papers 2014-14, Bar-Ilan University, Department of Economics.
    7. Jonah B. Gelbach, 2016. "When Do Covariates Matter? And Which Ones, and How Much?," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 509-543.
    8. Roland G. Fryer, Jr, 2010. "Racial Inequality in the 21st Century: The Declining Significance of Discrimination," NBER Working Papers 16256, National Bureau of Economic Research, Inc.
    9. Richard Chisik, 2015. "Job market signalling, stereotype threat and counter‐stereotypical behaviour," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(1), pages 155-188, February.
    10. Sheng Bi & Yuanyuan Li, 2016. "Holdup and hiring discrimination with search friction," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01277548, HAL.
    11. Bond, Timothy N. & Lehmann, Jee-Yeon K., 2018. "Prejudice and racial matches in employment," Labour Economics, Elsevier, vol. 51(C), pages 271-293.
    12. Bhashkar Mazumder, 2014. "Black–White Differences in Intergenerational Economic Mobility in the U.S," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I.
    13. Nicole Maestas & Kathleen J. Mullen & David Powell & Till von Wachter & Jeffrey B. Wenger, 2023. "The Value of Working Conditions in the United States and the Implications for the Structure of Wages," American Economic Review, American Economic Association, vol. 113(7), pages 2007-2047, July.
    14. Peter McHenry & Melissa McInerney, 2015. "Estimating Hispanic-White Wage Gaps Among Women: The Importance of Controlling for Cost of Living," Journal of Labor Research, Springer, vol. 36(3), pages 249-273, September.
    15. Yue Yu & Chengkui Liu, 2023. "Pre-market discrimination or post-market discrimination: research on inequality of opportunity for labor income in China," Empirical Economics, Springer, vol. 64(5), pages 2291-2313, May.
    16. Tymon Słoczyński, 2020. "Average Gaps and Oaxaca–Blinder Decompositions: A Cautionary Tale about Regression Estimates of Racial Differences in Labor Market Outcomes," ILR Review, Cornell University, ILR School, vol. 73(3), pages 705-729, May.
    17. Mary Kate Batistich & Timothy N Bond, 2023. "Stalled Racial Progress and Japanese Trade in the 1970s and 1980s," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(6), pages 2792-2821.
    18. Upali Deb & Rudra Narayan Gupta & Chayan Basu & Mousumi Dutta & Zakir Husain, 2024. "Stalled Progress? Evidence from American Time Use Data on Gender Differences in Time Spent on Economic Activities," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(3), pages 681-708, September.
    19. Chesney, Alexander J. & Carrell, Scott E., 2024. "Brains versus brawn: Ordinal rank effects in job training," Journal of Public Economics, Elsevier, vol. 238(C).
    20. Zahid Amadxarif & Marilena Angeli & Andrew G Haldane & Gabija Zemaityte, 2020. "Understanding pay gaps," Bank of England Staff Working Paper series 877, Bank of England.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-16-00482. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.