Wealth Inequality: Ethnic Disparities in Israeli Society

This reserach examines wealth distribution across ethnic groups in Israel and evaluates the role of labor market rewards and intergenerational transfers in producing ethnic disparities. Israel SHARE data from 2005-2006 are used in the analyses. The findings reveal considerable ethnic disparities in wealth. Wealth disparities are most pronounced when Israeli-born Jews are compared with Arabs and with immigrants from the Former Soviet Union. Further analysis suggests that wealth buildup in Israel is influenced by two major sources: income flows and inheritance. The differential impact of the two sources on wealth disparities can be best understood when considering the unique position of each ethnic group in Israeli society.