Two dimensions to economic incorporation: Soviet immigrants in the Israeli labour market

This paper examines the economic integration of immigrants from the Former Soviet Union into the Israeli labour market in terms of occupational and earnings mobility (i.e. decreasing occupational and earnings disparities) in comparison with several Israeli Jewish sub-populations. Using data from annual Income Surveys conducted by the Israel Bureau of Statistics between the years 1995 and 2006, we find little occupational and earnings mobility of Soviet immigrants throughout the period and substantial occupational and earnings disadvantages compared to all Jewish sub-populations (especially when compared to Jews of European/American origin). The findings are discussed in light of the assimilation model, suggesting that the social and economic circumstances associated with the arrival of Soviet immigrants in Israel have longlasting, detrimental consequences for their economic assimilation.