|M.Sc Student||Jabali Serhan Sabaa|
|Subject||Married Women Labor Supply, and Differences between Ethnic|
Groups in Israel
|Department||Department of Industrial Engineering and Management||Supervisors||DR. Jacob Schwartz|
|PROF. Benjamin Bental|
This study proposes to empirically examines what affects married women labor supply in Israel, focusing on the differences between the behavior of Arab and Jewish married women. The major contribution of this research is that unlike most other studies in the Israeli context, which examine the participation decision, i.e. whether to enter the labor market or not, I examine the effect of individual and familial factors on hours supplied over the years. Using the Public Use Files (PUF) version of the cross-sectional Israeli Income Surveys for the 1997 to 2011 time period, the results show that the expected monthly hours supplied of married Arab and Jewish women are positively and significantly affected by additional education years, are concave with age, are negatively and significantly affected by children aged 0-14, and negligibly affected by other sources of income. These findings are similar to the existing in literature. However, there are major differences in the estimated coefficients for Arab and Jewish married women. For Arab women, there is high volatility in the estimated explanatory variables over the various surveys. In addition, the study adopts a pseudo panel approach to estimate the elasticities of monthly hours of work with respect of wages, cross wages and income. The estimated wage elasticity for Arab and Jewish married women during the sample years is almost identical. A one percent change in the wage raises Arab married women expected monthly hours by 0.59% and that of Jewish married women by 0.60%. Furthermore, the estimated elasticities are larger for better educated women both for Arab and Jewish married women.