Why is there a Higher Rate of Self-Employed People in the Arab Sector than in the Jewish Sector?

By Tal Shahor.

Published by The Humanities Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

One of the main problems facing Israel today is the integration of the Arab sector into the Israeli economy. 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 – salaried 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 salaried employee sector and from this distribution I sought to learn about the integration of Arabs into the Israeli workforce. 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 salaried employee sector. Furthermore, the results show that the main factor behind this weakness is not race discrimination but rather that a section of the Arab workforce is ill-suited to the Israeli job market.

Keywords: Salaried Employee, Self-Employed, Income Disparity, Professional Segregation

International Journal of the Humanities, Volume 6, Issue 7, pp.7-14. Article: Print (Spiral Bound). Article: Electronic (PDF File; 526.680KB).

Dr. Tal Shahor

Lecturer, Economics, The Max Stern Academic College of Emek Yezreel, Mosav Yaad, Israel, Israel


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