Paving the way to Labor Market Success for Arab Higher Education Graduates

This study examines the quality of labor market integration among Arab bachelor's degree holders who have obtained their degrees in Israeli academic institutions. The study utilizes rich administrative data compiled by the Central Bureau of Statistics of Israel. The findings indicate that Arab BA degree holders, both men and women, exhibit high employment rates and are able to secure employment immediately after graduation. The wage premiums on education for Arab graduates are comparable to those of Jewish graduates, albeit with significant variation observed across different fields of study. Furthermore, the study reveals that after accounting for demographic differences, there are no wage disparities between Arab and Jewish men. Yet, for women, even after controlling for observable characteristics, Arab women still earn 10% less than Jewish women in the public sector and 22% less in the private sector. Factors such as work hours and occupational choices explain at least some of this disparity for Arab women. Overall, the findings suggest that Arab graduates can successfully compete in the job market and benefit from their education. This study provides valuable insights into public policy and highlights the importance of promoting access to higher education for the Arab population in Israel.