Why is There a Higher Rate of Self-Employed People in the Minority Sectors Than in the Majority Sector: Study Case in Israel 2011

Authors

  • Tal Shahor Department of Economics and Management, The Academic College of Emek Yezreel, Israel

DOI:

https://doi.org/10.26417/ejser.v1i1.p18-23

Keywords:

Salaried employee, self-employed, Jews Arabs, income disparity

Abstract

One of the main problems facing governments today is the integration of the minority sectors into the national economy. This study examines this issue in the context of the Arab minority and the Jewish majority in Israel. An important aspect of this problem is the integration of Arabs into the Israeli workforce. The objective of this study is to investigate this problem by dividing the workforce into two sectors – wage-earning employees and the self-employed. The basis for the discussion is that an employee in the job market who, for different reasons, is unable to receive suitable remuneration that is on a par with his or her skill level will turn to the self-employed sector. Within this framework, I compared the way in which the workforce in each sector (Jewish and Arab) was divided between the self-employed sector and the wage-earning employee sector and from this distribution I sought to learn about the integration of Arabs into the Israeli workforce. in 2011 the results of this study show that within the Arab population, the self-employed sector has a relative advantage because of the weakness of the wage-earning employee sector.

References

Arrow, K. (1972). Some mathematical models of race discrimination in the labor market. in D. C. Health (ed.). Racial Discrimination in Economic Life. Lexington, Mass.

Becker, G. S. (1993). Human capital: A theoretical and empirical Analysis, with Special reference to education. Chicago: University of Chicago Press

Becker, K. (1971). The economics of discrimination. Chicago: University of Chicago Press.

Central Bureau of Statistics, (2014). Local Authorities in Israel 2012. (Hebrew). http://www.cbs.gov.il/reader/?MIval=cw_usr_view_SHTML&ID=357

Central Bureau of Statistics, (2013). Characterization and Classification of Local Authorities by the Socio – Economic Level of the Population 2008. Publications No. 1530. (Hebrew). http://www.cbs.gov.il/reader

Dahan, M. (2002). The rise of earning inequality. in A. Ben-Bassat (ed.). The Israeli Economy 1985 – 1998: From Government Intervention to Market Economics (pp. 648-651). Cambridge and London: MIT Press. (Hebrew).

Darity, W. (1989). What left of the economic theory of discrimination?. in W. Darity (ed.). The Question of Discrimination: Racial Inequality in the U.S. Labor Market, Middletown: Conn. Wesleyan University Press.

Friedman F., & Zussman, N. (2008). Labor quality in israel. Research Department, Bank of Israel. (Hebrew) http://www.boi.org.il/he/Pages/Default.aspx

Haberfield, Y. (1990). Salary discrimination against women in israel: a conceptual framework, research methods, findings and trends. Human Resources and Labor Relations in Israel. Tel Aviv: Ramot. (Hebrew).

Gharrah, R., & Cohen, R. (2001). Poverty among israeli Aarabs and sources of inequality between Arabs and Jews. The Economic Quarterly, 48, 485-517.

Hasson, S., & Abu-Asbah K. (2004). Jews and Arabs in Israel. Floersheimar Studies, Jerusalem.

Hasson,S., & M. Karayanni. (2006). Barriers to equality: The Arabs in Israel. Floersheimar Studies, Jerusalem.

Kleiman, E. (2001). Integrated or separated and may even be equal. The Economic Quarterly, 48, 648-651.

Downloads

Published

2022-09-09

How to Cite

Shahor, T. (2022). Why is There a Higher Rate of Self-Employed People in the Minority Sectors Than in the Majority Sector: Study Case in Israel 2011. European Journal of Social Science Education and Research, 9(2), 1–9. https://doi.org/10.26417/ejser.v1i1.p18-23