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The Economic Outcomes of an Ethnic Minority: the Role of Barriers

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  • Yashiv, Eran
  • Kasir (Kaliner), Nitsa

Abstract

The Arab population in Israel constitutes an ethnic minority, at around 20% of the population. The economy of this minority is characterized by inferior outcomes relative to the Jewish majority by all indicators, including employment, wages, occupational status, social welfare, education, and housing. This paper reviews key data facts and presents a model of barriers to integration facing Arabs in Israel, taking it to the data. The empirical analysis, based on a general equilibrium model of occupational choice with optimizing agents and barriers, points to an increase over time in barriers to the acquisition of human capital in highly skilled occupations, and, concurrently, a reduction in labor market barriers in all occupations. The analysis offers insights relevant to other developed economies with large ethnic minorities.

Suggested Citation

  • Yashiv, Eran & Kasir (Kaliner), Nitsa, 2020. "The Economic Outcomes of an Ethnic Minority: the Role of Barriers," CEPR Discussion Papers 15151, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15151
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    References listed on IDEAS

    as
    1. Eran Yashiv & Nitsa Kasir (Kaliner), 2011. "Patterns of Labor Force Participation Among Israeli Arabs," Israel Economic Review, Bank of Israel, vol. 9(1), pages 53-101.
    2. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    3. Revital Bar & Asaf Zussman, 2017. "Customer Discrimination: Evidence from Israel," Journal of Labor Economics, University of Chicago Press, vol. 35(4), pages 1031-1059.
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    More about this item

    Keywords

    Ethnic minority; Human capital barriers; Labor market barriers; Occupational choice;
    All these keywords.

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