Wage Differentials in the 1990s in Israel: Endowments, Discrimination and Selectivity

37 Pages Posted: 30 Dec 2004

See all articles by Shoshana Neuman

Shoshana Neuman

Bar-Ilan University - Department of Economics; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Ronald L. Oaxaca

University of Arizona - Department of Economics; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 2004

Abstract

The purpose of this Paper is to investigate wage structures of professional workers in the Israeli labor market, using data from the most recent 1995 Census and correcting for selectivity at the stage of entrance into the occupation. The sample of professionals is decomposed into several subsamples: men and women, and within each gender a distinction is made between Easterners (originating from Asian/African countries) and Westerners (from European/American countries of origin). Comparisons by gender and ethnicity can then be made. Characteristics (endowments) and wage structures of the four groups are presented. Wage equations include the Inverse of Mill's Ratio as a regressor to correct for selection into the professional occupations. Wage differences are then examined and decomposed into three components: endowments (human capital), discrimination and selectivity. Following the methodology presented in Neuman and Oaxaca (2004), four alternative decompositions are suggested and discussed.

Keywords: Employment spells, non-employment, gender, ethnicity, education, age, marital status

JEL Classification: J12, J15, J16, J21, J22

Suggested Citation

Neuman, Shoshana and Oaxaca, Ronald L., Wage Differentials in the 1990s in Israel: Endowments, Discrimination and Selectivity (October 2004). CEPR Discussion Paper No. 4709. Available at SSRN: https://ssrn.com/abstract=641583

Shoshana Neuman (Contact Author)

Bar-Ilan University - Department of Economics ( email )

Ramat-Gan, 52900
Israel
+972 3 531 8393 (Phone)
+972 3 535 3180 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Ronald L. Oaxaca

University of Arizona - Department of Economics ( email )

McClelland Hall
Tucson, AZ 85721-0108
United States
520-621-4135 (Phone)
520-621-8450 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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