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Discriminated or Not? The Arab Minority in the Israeli Labor Market

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  • Yaakov Gilboa

Abstract

In this paper, I investigate whether the higher rate of return to schooling of minorities in Israel could be a result of non-linear discrimination against them in the labor market. By composing the wage gap between Jews and non-Jews (Non-Jews in Israel are mainly Arabs. Therefore, I use the terms non-Jews and Arabs interchangeably) workers separately, for low-educated and high-educated workers, I show that the unexplained share of the gap, which is at least partly due to discrimination, is dramatically reduced in the high-educated composition. It indicates a negative correlation between schooling and discrimination, which means that part of the higher return to education comes from the reduction in discrimination in jobs with higher education requirements.

Suggested Citation

  • Yaakov Gilboa, 2026. "Discriminated or Not? The Arab Minority in the Israeli Labor Market," Forum for Social Economics, Taylor & Francis Journals, vol. 55(2), pages 255-270, April.
    • Handle: RePEc:taf:fosoec:v:55:y:2026:i:2:p:255-270
    DOI: 10.1080/07360932.2024.2441694
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