Ethnic & Regional Determinants of Unemployment in the Isaeli Labour Market: A Multi-Level Model

Previous studies have revealed mixed results regarding the influence of the local labour market on ethnic differences in unemployment. Using data from the 1995 Israeli census, this study aimed to examine the relative influence of individual and spatial factors in determining the risk of employment among men aged 20–64 in Israel. Five ethnic groups are compared: Ashkenazi Jews, Sephardi Jews, Muslims, Christians and Druze. The data used consist of two levels: (1) worker level with information on education, ethnicity, class, marital status, immigration status and age (n ¼ 193 269); and (2) locality level with information on employment opportunities and new immigrants ( J ¼ 190). The data were analysed using a multilevel analysis technique (HLM – Bernoulli model). The evidence from the 1995 population census indicates that the risk of unemployment is a product of individual and contextual influences. Individual characteristics (ethnicity and class) and place of residence appear to determine the chances of employment. The enclave effect and the relationship between ethnicity and class are also discussed.