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Waves of immigrants are often dominated by a single ethnic group, creating difficulty in separating the effects of ethnic origin and immigrant status on earnings. The present article examines the separate effects of ethnicity and immigration on earnings by studying a sample of Israeli workers. The results indicate that immigrant status constitutes a major handicap in the Israeli labor market. Ethnicity, on the other hand, plays a minor role in the earnings determination process. The consequences of these results for labor market policies are discussed.
Yitchak Haberfeld (Tue,) studied this question.