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Immigrants in the Israeli Hi-Tech Industry: Comparison to Natives and the Effect of Training

In: The Economics of Immigration and Social Diversity

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  • Sarit Cohen-Goldner

Abstract

During the 1990s, the Israeli economy experienced two major events. First, starting in the fall of 1989, a large wave of relatively highly skilled immigrants arrived from the former Soviet Union (CIS) increasing the population and the labor force by considerable magnitude. Second, the hi-tech sector has grown substantially and reached a peak in growth and level in 2000. This paper provides a descriptive analysis of the integration of immigrants from the CIS in the Israeli labor market and, specifically, in the hi-tech sector. Based on a unique panel data that follows immigrants for up to 12 years in Israel we find a significant positive correlation between immigrants’ participation in Israeli government-provided training programs and the propensity to work as professionals in the hi-tech industry and to work in white-collar occupations in other sectors. However, this correlation diminishes with ‘time since participation’ such that recent participants face a higher probability to work in hi-tech and white-collar jobs than those who participated in training earlier.

Suggested Citation

  • Sarit Cohen-Goldner, 2006. "Immigrants in the Israeli Hi-Tech Industry: Comparison to Natives and the Effect of Training," Research in Labor Economics, in: The Economics of Immigration and Social Diversity, pages 265-292, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-9121(05)24009-8
    DOI: 10.1016/S0147-9121(05)24009-8
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