DOES ETHNIC AFFILIATION AFFECT THE CHOICE TO BE SELF-EMPLOYED? CASE STUDY ON THE LABOR MARKET IN ISRAEL

Abstract

The aim of the paper is to empirically examine the variables that influence the choice of economic status, with emphasis on the differences between Arabs and Jews in Israel regarding this economic choice. Self-employed workers - business owners or entrepreneurs - are the force that contributes to the progress of individuals, companies and countries and are, therefore, an important factor for economic policy makers. The sector of self-employed workers - despite the numbers above - is a tier of significant specific attention in the workforce. However, so far, the self-employed sector has not received the proper attention in the literatur. The results indicate differences in the economies in which Jews and Arabs work as self-employed workers, and it is evident that there are areas that are more typical of self-employed Jews or self-employed. The industries in which the self-employment rate is advantageous or equitable for the self-employed are vehicles (sales and repair), electricity and water supply, banking and insurance. The first two areas do not require higher education, and can be associated with neighborhood / home services that characterize the self-employed in this level of education. In contrast, in education, public administration and construction, Jews had a considerable advantage in the employment rate as self-employed.