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Jewish-Arab Wage Gap: What Are The Causes?

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  • Muhammad Asali

Abstract

Using a panel of cross sections, this study measures wage differentials between Israeli-Arab and Jewish workers between 1991 and 2003. The wage gap is then decomposed into components corresponding to human capital, occupational segregation, selectivity, and a residual (unexplained gap). The study shows large fluctuations in the wage gap, almost doubling in the last decade, reaching 75% in 1999. Because sudden changes in the underlying characteristics of the populations are not likely, a large part of the level and changes in the wage gap were captured by the residual - possibly one of the implications of the ongoing Israeli-Palestinian conflict.

Suggested Citation

  • Muhammad Asali, 2010. "Jewish-Arab Wage Gap: What Are The Causes?," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(4), pages 367-380.
    • Handle: RePEc:taf:defpea:v:21:y:2010:i:4:p:367-380
    DOI: 10.1080/10242694.2010.491716
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Asali, 2017. "Military Service and Future Earnings Revisited," Working Papers 005-17 JEL Codes: J24, J3, International School of Economics at TSU, Tbilisi, Republic of Georgia.
    2. Asali, Muhammad, 2015. "Compulsory Military Service and Future Earnings: Evidence from a Quasi-Experiment," IZA Discussion Papers 8892, Institute of Labor Economics (IZA).
    3. Muhammad Asali, 2021. "Gender and ethnic wage differentials inhibit growth: A shred of evidence," Working Papers 002-21, International School of Economics at TSU, Tbilisi, Republic of Georgia.
    4. Muhammad Asali & Rusudan Gurashvili, 2020. "Labour market discrimination and the macroeconomy," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(3), pages 515-533, July.
    5. De Palma André & Perali Federico & Ricciuti Roberto & Scorbureanu Alexandrina & Picard Nathalie, 2013. "Social Crisis Prevention: A Political Alert Index for the Israel-Palestine Conflict," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(2), pages 103-122, August.
    6. Asali, Muhammad & Pignatti, Norberto & Skhirtladze, Sophiko, 2018. "Employment discrimination in a former Soviet Union Republic: Evidence from a field experiment," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1294-1309.
    7. Asali, Muhammad & Pignatti, Norberto & Skhirtladze, Sophiko, 2017. "Employment Discrimination in a Former Soviet Union Republic: Evidence from a Field Experiment," IZA Discussion Papers 11056, Institute of Labor Economics (IZA).
    8. Asali , Muhammad, 2015. "Recessions are not good for your health: the counter-cyclical health outcomes revisited," European Economic Letters, European Economics Letters Group, vol. 4(1), pages 11-14.
    9. Muhammad Asali, 2013. "The Effect of Immigration on Unskilled Native Workers: Evidence from a Natural Experiment," Southern Economic Journal, John Wiley & Sons, vol. 80(2), pages 345-365, October.
    10. Muhammad Asali, 2018. "Military service and future earnings: Evidence from an Informed Difference-in-Differences (IDID) approach," Economics Bulletin, AccessEcon, vol. 38(3), pages 1583-1589.

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