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Ethnic conflict and job separations


  • Sami Miaari
  • Asaf Zussman


  • Noam Zussman


We study the effect of the second Intifada, a violent conflict between Israel and its Palestinian neighbors which erupted in September 2000, and the ensuing riots of Arab citizens of Israel, on labor market outcomes of Arabs relative to those of Jewish Israelis. The analysis relies on a large matched employer-employee dataset, focusing on firms that in the pre-Intifada period hired both Arabs and Jews. Our analysis demonstrates that until September 2000 Arab workers had a lower rate of job separation than their Jewish peers and that this differential was significantly reduced after the outbreak of the Intifada. We argue that the most likely explanation for this pattern is increased anti-Arab discrimination among Jews.
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Suggested Citation

  • Sami Miaari & Asaf Zussman & Noam Zussman, 2012. "Ethnic conflict and job separations," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(2), pages 419-437, January.
  • Handle: RePEc:spr:jopoec:v:25:y:2012:i:2:p:419-437
    DOI: 10.1007/s00148-011-0383-7

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    References listed on IDEAS

    1. Eckstein, Zvi & Tsiddon, Daniel, 2004. "Macroeconomic consequences of terror: theory and the case of Israel," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 971-1002, July.
    2. Asaf Zussman & Noam Zussman, 2006. "Assassinations: Evaluating the Effectiveness of an Israeli Counterterrorism Policy Using Stock Market Data," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 193-206, Spring.
    3. Neeraj Kaushal & Robert Kaestner & Cordelia Reimers, 2007. "Labor Market Effects of September 11th on Arab and Muslim Residents of the United States," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
    4. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
    5. Braakmann Nils, 2009. "The Impact of September 11th, 2001 on the Employment Prospects of Arabs and Muslims in the German Labor Market," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(1), pages 2-21, February.
    6. Nils Braakmann, 2007. "Islamistic Terror, the War on Iraq and the Job Prospects of Arab Men in Britain: Does a Country’s Direct Involvement Matter? This paper examines whether the labor market prospects of Arab men in Engla," Working Paper Series in Economics 70, University of Lüneburg, Institute of Economics.
    7. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier.
    8. Dmitri Romanov & Asaf Zussman & Noam Zussman, 2012. "Does Terrorism Demoralize? Evidence from Israel," Economica, London School of Economics and Political Science, vol. 79(313), pages 183-198, January.
    9. Alberto Dávila & Marie Mora, 2005. "Changes in the earnings of Arab men in the US between 2000 and 2002," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(4), pages 587-601, November.
    10. Pfeifer, Christian & Schneck, Stefan, 2010. "Relative Wage Positions and Quit Behavior: New Evidence from Linked Employer-Employee Data," Hannover Economic Papers (HEP) dp-438, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    11. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    12. Olof Åslund & Dan-Olof Rooth, 2005. "Shifts in attitudes and labor market discrimination: Swedish experiences after 9-11," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(4), pages 603-629, November.
    13. Kerwin Kofi Charles & Jonathan Guryan, 2007. "Prejudice and The Economics of Discrimination," NBER Working Papers 13661, National Bureau of Economic Research, Inc.
    14. NilS Braakmann, 2007. "The impact of September 11th, 2001 on the job prospects of foreigners with Arab background - Evidence from German labor market data," Working Paper Series in Economics 37, University of Lüneburg, Institute of Economics.
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    Cited by:

    1. Massimiliano Calì & Sami H. Miaari, 2012. "The labour market impact of mobility restrictions: Evidence from the West Bank," HiCN Working Papers 130, Households in Conflict Network.
    2. Adnan, Wifag & Miaari, Sami H., 2018. "Voting Patterns and the Gender Wage Gap," IZA Discussion Papers 11261, Institute for the Study of Labor (IZA).
    3. Moses Shayo & Asaf Zussman, 2011. "Judicial Ingroup Bias in the Shadow of Terrorism," The Quarterly Journal of Economics, Oxford University Press, vol. 126(3), pages 1447-1484.
    4. Michele Di Maio & Roberto Nisticò, 2016. "The Effect of Parental Job Loss on Child School Dropout: Evidence from the Occupied Palestinian Territories," CSEF Working Papers 456, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 06 Feb 2018.
    5. Georgiadis, Andreas & Manning, Alan, 2013. "One nation under a groove? Understanding national identity," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 166-185.
    6. repec:spr:jopoec:v:31:y:2018:i:1:d:10.1007_s00148-017-0646-z is not listed on IDEAS

    More about this item


    Ethnic conflict; Job separation; Israel; J15; J63; J71;

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing


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