| Publication |
2010.
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| Summary/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.
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