Intracohort Trends in Ethnic Earnings Gaps: The Role of Education

Author:

Yaish Meir1ORCID,Gabay-Egozi Limor2

Affiliation:

1. University of Haifa, Haifa, Israel

2. Bar-Ilan University, Ramat Gan, Israel

Abstract

This study demonstrates that studying ethnic/racial inequality on the basis of cross-sectional data conceals how such inequality might unfold over the life course. Moving beyond a snapshot perspective, we ask, Do Israel’s Jewish ethnic groups differ in their long-term earnings trajectories? Analyzing nearly 20 years of registered earnings data, the authors find that for the same cohort (25- to 32-year-old Jews in 1995), the ethnic earnings gap has widened over these years. This trend, we demonstrate, is explained largely by increasing wage premiums for college degree, even when these premiums are ethnicity blind. That is, ethnic inequality in educational attainment is translated to increasing ethnic earnings inequality over the life course. This pattern cannot be detected in previous research in Israel, which relied on the snapshot perspective on the basis of cross-sectional data. The consequences of these findings for changes in inequality in divided societies are discussed.

Funder

Israel Science Foundation

Publisher

SAGE Publications

Subject

General Social Sciences

Reference47 articles.

1. Palestinian Education in Israel: The Legacy of the Military Government

2. Field of Study and Students' Stratification in an Expanded System of Higher Education: The Case of Israel

3. Beenstock Michael. 2002. “Mobility and Longitudinal Inequality in Earnings: Israel 1983–1995.” Discussion Paper No. 02.03. Jerusalem, Israel: Maurice Falk Institute for Economic Research.

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