Conflicting identities and labour market outcomes of minorities: Evidence from Arabs in Israel

This study investigates the associations between conflicting identities of ethnic minorities and labour market outcomes, focusing on Arabs in Israel. The case is instructive and different from most minority groups due to the profound contradiction between Arabs’ national-Palestinian identity and their civic-Israeli identity, stemming from the Israeli-Palestinian conflict. Previous studies have mainly examined employment participation, often overlooking quality measures and employment locations – predominantly majority of minorities areas. Using survey data from 552 Arab citizens of Israel, findings reveal that Israeli identity is positively associated with employment probability, while Palestinian identity does not. Regarding employment quality, both identities, as well as their interaction, are associated with higher income, highlighting the labour market advantages of a bicultural identity. However, Israeli identity is linked to less prestigious positions, while Palestinian identity has no significant impact on prestige or rank. Additionally, the study uncovers distinct identity dynamics in predominantly Arab versus Jewish work environments. Most notably is that while in predominantly Jewish areas the studied identities are not associated career advancement represented in rank, in Arab vicinities both identities are associated with higher rank. The findings are discussed in the contexts of discrimination, social categorization and bi-cultural identities. • Ethnic and civic identities are associated with participation but also with occupational quality. • Different identities and employment associations are evident in minority and majority areas. • Bicultural identity promotes occupational outcomes even in Israel’s contested case.