Excluded population from the Israeli labor market: The case of Israeli Arabs and people with disabil

1
Excluded population from the Israeli labor
marketThe case of Israeli Arabs and people with
disability

• Ronit Nadiv
• Tel Aviv University

2
Presentation outline

• General background
• Social exclusion definition and measurement
• Main groups in Israeli labor market who are
  socially excluded
• Integration of Israeli Arabs in the Israeli labor
  market
• Economic indicators
• Barriers to full integration
• Public policy suggestions
• Integration of people with disability in the
  Israeli labor market
• Economic indicators
• People with disability act
• Barriers to full integration
• Public policy suggestions

3
Data measurements

• National bureau of labor statistics
• Labor force survey
• Income survey
• Social survey

4
Social exclusion

• Social exclusion is a state when a person or a
  group are excluded or expelled to the margin of
  society. Social exclusion is an outcome of social
  inequality and the failure of social, political,
  cultural and economical systems to include in the
  society different groups.
• Multi dimensional Economic disadvantages
• Dynamic analysis
• Neighborhood level
• Social capital
• Social disaster

5
Poverty focus in Israel, 2004
6
Participation rate, unemployment years of
schooling, working age population
7
Last diploma, working age population
8
Unemployment pay and Income Support Receivers,
1985 2003
thousands
yearly change
180
yearly change Income Support
155.2
151.6
30
160
142.0
128.4
140
20.9
104.7
19.4
120
97.1
20
92.6
100
74.8
70.5
80
50.6
60
10
40
19.6
20
0
0
1985
1990
1995
2000
2001
2002
2003
-3.6
yearly change Unemployment
-10
Unemployment receivers (thousands)
Income Support (thousands)
-20
yearly change Unemployment (percent)
yearly change Income Support (percent)
-27.4
-30
9
Israeli Arabs

• Socio demographic characteristics and employment
  barriers

10
Arab population in Israel, 2004- facts figures
2004
Major indexes
Jews
Arabs
Total population, thousands By religion
Moslems, thereof Bedouins druze
Christians Annual growth 2000-2004 Fertility
rate to 1000 persons Percentage from total
population Percentage of under age 14 from
total Percentage of age 65 from total Percentage
living in common inhabited Number of households,
thousands Percentage of households from
total Average persons per household
1,320.9 (100) 1090.0 (82.5) 230.0 111.9
(8.5) 116.5 (8.8) 2.7 30.9 19.4 41.0 3.2 23
.6 255.3 13.2 4.91
5,201.5 - - - - - - - - - - -
- 1.2 19.0 76.4 25.5 11.8 22.7 1,621.8 84.2
3.12
11
Labor market participation, employment and
unemployment by religion gender and education,
2004
Total population
matriculation certificate
total
male
female
total
male
female
Arabs Participation rate Percentage discourage
working part time involuntary part
time Unemployment rate Duration of unemployment,
Jews Participation rate Percentage discourage
working part time involuntary part
time Unemployment rate Duration of unemployment,
45.7 11.7 5.8 9.3 10.7 54.8
69.3 9.1 5.3 5.9 10.2 55.7
21.2 20.5 6.2 21.6 12.6 52.3
43.7 12.1 4.7 9.0 14.7 57.9
68.4 10.8 5.1 6.4 13.0 58.5
13.9 19.2 4.1 26.6 24.6 56.1
71.1 1.1 12.3 5.8 10.2 34.0
72.3 0.9 6.5 2.5 9.3 34.0
70.0 1.3 17.8 9.2 9.3 34.0
62.6 1.8 10.2 7.1 9.3 34.0
1.3 5.2 3.0 9.3 34.0
58.2 2.6 16.9 13.7 17.7 38.2
12
Poverty rate (percentage) of Jews and Arab
households by family type
Arabs
Jews
2004 Total, thousands Total, percentage 1998 Total
households Families without children Families
with children Families with 1-3 children Families
with 4 children Veteran families
270.7 16.7 13.5 13.9 13.1 11.1 27.6 16.7
123.5 48.4 37.6 30.5 40.2 37.3 45.3 59.9
13
Income source of Arab households by number of
employed persons, 2004
Number of Employed persons
Arabs
percentage
0
1
2
3
4
0
2
Main sources
47.6 2875 0 0 487 2388 848 2731 4.66 1401.3
98.5 6,514 5227 5223 184 1103 168 5678 4.98 1140.1
33.8 11,981 10,987 6546 140 854 198 9967 5.24 1902
.6
7.7 15,892 14,814 5379 162 917 400 13471 6.95 1938
.3
1.8 20,850 19,785 5979 407 657 0 17890 8.36 2140

• 100
• 0.0
• -
• 17.0
• 83.0

100 91.7 - - 1.2 7.1
Number of households Gross income from all
sources Gross income from work thereof head
of household Other income Income from social
security Thereof unemployment and income
insurance Net household income Number of
persons Net income per person
Jews
14
Households by number of breadwinner, 2004
(thousands and percentage)  
Jews (100)
1.8
5.7
36.9
39.4
16.1
1.0
4.1
17.8
52.0
25.1
Arabs (100)
15
integrating Arab population in employment main
problems

• Main problems demand side
• Low rate of employment infrastructure
• Replacement of low skills workers by foreign
  workers
• Two different economies (discrimination)

• Main problems supply side
• Low education and poor adjustment to labor market
  changes
• Traditional society and gendered labor division
• Social networks which are not connected to the
  Israeli labor market

16
Sum of main problems
Traditional society
Replacement of low skills workers
Low skills
Segregated labor markets
outcomes
participation employment unemployment wage Income
and poverty
17
solutions

• Education and vocational training
• Focal vocational training combined with on the
  job training.
• Improving general skills Hebrew
• Life long learning
• Joint vocational training for Arab and Jew
  youngsters
• Integrating Arab women into employment
• Developing Day cares in the Arab sector.
• Subsidization day cares and after school
  programs.
• Geographical distance
• Frequent Public transportation
• Subsidization of public transportation

18

• Economic integration
• Governmental incentives for joint ventures of
  Arab and Jew entrepreneurs
• Developing joint Arab and Jew commercial and
  pleasure centers.
• Developing joint Arab and Jew industrial areas.
• Developing activities of sub contractors in the
  Arab sector for governmental activities.
• Improving the economy Arab sector
• Developing employment possibilities near relevant
  geographic areas.
• Providing incentives for developing industrial
  zones near Arab regions.
• Promoting small business in the Arab sector.
• Governmental funding for small businesses.

19

• Discrimination
• Incentives for joint Arab and Jew youth coaching
• Incentives for joint learning.
• Promoting Arab workers in the public sector.
• Promoting Information against employment
  discrimination.
• Enforcement EPL (employment protection law)
• Reducing the number of foreign workers.
• Enforcement of EPL and especially minimum wage
  law.

20
END
21
links
22
Annual growth rate 1985-2004
????
4.0
3.4
3.5
Arabs
3.2
2.8
3.0
2.7
2.3
2.5
1.8
2.0
1.5
1.2
Jews
1.0
0.5
0
1985-1990
1990-1995
1995-2000
2000-2004
23
Annual fertility rate 1985-2004
Per 1000 persons
40
34.0
33.8
35
32.8
33.0
30
Arabs
25
20.6
18.7
20
18.7
18.4
Jews
15
1985-1990
1990-1995
1995-2000
2000-2004
24
Education structure by last diploma, age and
sector, 2004
Jews
Arab
Arabs
18-64
18-29
41-64
30-40
18-64
Last diploma
2748.9 100 14.4 21.9 21.8 15.7 24.7 13.1
613.7 100 52.1 16.0 17.0 6.3 8.2 9.2
226.4 100 37.9 23.1 24.0 7.3 7.5 11.1
199.1 100 71.2 7.6 8.9 4.3 7.3 7.3
188.2 100 49.2 16.4 17.0 7.1 10.0 10.6
Total, thousands Total, percentage Primary
school High school no matriculation matriculation
Secondary school Academic Mean years of schooling
25
Entitled to a matriculation certificate from
pupils in 12 grade Jew and Arab sector, 2002
Arab sector
Jew sector
examinees
Entitled to certificate
Met university Entrance requirement
examinees
Entitled to certificate
Met university Entrance requirement
Total population Education track general vocation
al agricultural Socio economic
cluster 1-2 3-4 5-6 7-8 9-10
88.2 94.7 76.5 85.5 91.1 86.4 86.4 - - -
51.1 58.0 38.2 47.9 53.6 59.3 58.6 - - -
30.5 34.6 23.1 25.4 34.2 45.8 43.2 - - -
79.8 89.7 77.7 84.2 19.2 68.4 83.1 89.5 95.0
56.5 67.3 47.8 46.2 9.8 46.7 56.3 65.3 78.0
47.2 58.2 36.8 33.3 7.4 35.7 45.4 57.6 74.0
26
Drooped out of educational system grades 7-11 Jew
and Arab sector, 2002
average national 6.2
27
Mothers participation rate by years of schooling
and number of children Jews and Arabs women, 2004
Jews
Arabs
average 12.2 25.8
1 child
4 ?children
1 child
4 children
average 57.4 81.9
28
Mothers participation rate by years of schooling
and age of youngest child Jews and Arabs women,
2004
Jews
Arabs
average 14.6 22.8
Age of youngest child 5-9
Age of youngest child 5-9
Age of youngest child 0-1
Age of youngest child 0-1
average 67.3 83.4
29
Palestinians and foreign workers in construction
1995-2004
Palestinians and foreign workers in construction
1995-2004
Israeli in wet occupation
??????
??????
Total Palestinians and foreign workers
Arab
Israeli in wet occupation
Jews
30
Employment of Arabs in industry by industry
sectors, 2004
total
women
thousands
thousands
Traditional industry
Traditional industry
Textile clothing
Textile clothing
High technology
High technology
31
Employment of Arabs by business owners, 2002
Arab owner
Jew owner
Joint owner
Arab
97
30
50
Most workers in work are
Jew
3
70
50
32
integrating in employment people with disability
33
People with disability in Israel
34
Who is a person with disability?

• A person with a physical, mental or intellectual
  handicap, permanent, by virtue of which his
  function in one or more of the central facets of
  his life is substantially limited (the equal
  rights for people with disabilities law).

35
People with disability by social survey 2002
Total population age 20
20-64
65
Age group
Do you have health problems
Have health problem
Dont have health problem
Have health problem
Dont have health problem
Does the problem limits you in daily life
Very limits
limits
Moderate limit
No limit
Very limits
limits
Moderate limit
No limit
Definition of disability
Very severe
severe
No disability
Very severe
severe
No disability
moderate
moderate
36
People with disability by social survey 2002
Total population age 20 3,669.3
20-64 3,345.4
65 323.9
Age group
Do you have health problems
Have health problem
Dont have health problem
Have health problem
Dont have health problem
914.7
2,430.7
133.8
190.1
Very limits
limits
No limit
Very limits
limits
Moderate limit
No limit
Does the problem limits you in daily life
Moderate limit
230.5
360.6
204.0
119.6
15.4
15.9
68.3
34.2
Definition of disability
Very severe
Very severe
severe
severe
moderate
moderate
No disability
No disability
37
People with disability by socio demographics
characteristics and disability severity age
20-64, 2002
Total people with disabilities
thereof
No health problems
severe
Very sever
100 49.3 50.7 53.5 20.8 71.8 8.7 15.0
100 49.4 50.6 55.6 17.6 72.3 10.3 11.5
100 44.4 55.6 49.8 26.3 70.3 10.4 14.4
100 48.8 51.2 69.3 16.1 66.3 4.8 27.3
total men women Tenure in Israel thereof born
in Israel immigrants (1990) Marital
status married divorced single
__________ 1) ??"? ????? ?? ??????? ????? ???? 2)
????? ??????? ???? ??? ??? ???? ?????? ????
?????? ??? ??? ??????? ?????? ????????? 3) ?????
??????? ???? ???? ??? ???? ?????? ???? ?????? ???
??????? ????? ????????? ??? ????? , 2002 ??"?,
?????? ???????? ??????? ????? ????? ???? ??????
38
People with disability by socio demographics
characteristics and disability severity age
20-64, 2002
Total people with disabilities
No health problems
thereof
severe
Very severe
Jews Moslems age 20-29 30-39 40-49 50-64 Highes
t educational certificate Primary school High
school matriculation Secondary school Academic
degree
74.6 14.8 12.3 19.8 25.7 42.2 7.7 29.2 20.1 20
.9 19.3
71.4 20.6 10.1 18.1 27.0 44.8 7.2 35.5 21.7 17
.1 14.9
76.6 11.1 13.6 20.9 25.0 40.5 8.0 25.9 19.3 22
.8 21.5
82.6 10.6 35.0 27.3 20.2 17.4 3.4 22.1 26.4 17
.2 27.0
???? ??? ????? , 2002 ??"?, ?????? ????????
??????? ????? ????? ???? ??????
39
Participation rate of people with disabilities,
age 20-64, 2002
Total people With disability
thereof
severe
Very sever
Total employment, thousands Participation
rate total men women Jews Arabs Immigrants (1990)
236.0 39.9 43.7 36.7 45.0 22.2 43.4
66.2 28.7 30.1 27.4 34.2 13.8 29.8
169.8 47.1 53.3 42.1 51.4 29.2 49.3
???? ??? ????? , 2002 ??"?, ?????? ????????
??????? ????? ????? ???? ??????
40
People with disabilities by age and education,
2002
Total people With disabilities
By disability severity

age 20-29 30-39 40-49 50-64 Highest
certificate Primary school High
school matriculation Secondary school Academic
degree
7.4 13.9 21.3 31.0 27.1 18.6 11.9 17.0
10.9

???? ??? ????? , 2002 ??"?, ?????? ????????
??????? ????? ????? ???? ??????
41
People with disabilities rate by countries
average OECD 14.0
???? ???? ????? ?????? ?- OECD, ?????
?????? ???? ??????, ??????? ???????
42
People with disability by gender, education age
international comparison
age
gender
education
20-49
50-64
man
woman
low
high
Australia Austria Belgium Canada Denmark France Ge
rmany Italy Korea Mexico Ireland Norway Poland Por
tugal Spain Sweden Switzerland Britain USA OECD
Israel
9.0 7.8 8.4 13.4 15.2 11.5 11.4 4.1 2.2 5.1 14.8 1
3.3 7.5 12.8 6.7 15.5 12.1 13.7 8.2 10.1 13.4
24.4 27.0 17.5 24.2 27.4 28.1 31.6 14.2 5.8 15.8 2
9.9 26.4 31.1 34.9 24.3 34.1 21.3 29.3 18.8 24.5 3
1.0
12.9 13.8 9.8 15.4 16.5 15.5 18.9 6.8 4.2 7.8 15.9
13.6 - - 17.1 11.1 18.4 13.6 17.0 10.4 13.3 16.7
12.7 12.2 12.0 16.8 20.9 16.3 17.2 7.4 1.9 6.2 21.
6 19.8 - - 20.8 11.6 22.9 15.5 19.3 10.8 14.8 18.6
16.9 18.1 12.2 18.5 25.9 19.9 20.9 9.4 3.6 - -
23.2 22.6 - - 22.5 16.0 31.8 20.6 22.8 22.3 19.2
19.9
7.4 11.3 9.1 14.9 15.8 12.5 16.9 3.9 1.0 - -
16.8 13.9 - - 6.6 4.0 17.9 13.3 14.9 8.9 11.1 13
.4
43
Participation rate of people with disabilities by
age and education, 2002
Total people With disability
Thereof Very severe severe disability

44.8 42.9 48.8 31.6 40.6 39.9 48.9 60.3
53.8 5.0
age 20-29 30-39 40-49 50-64 Highest
certificate Primary school High
school matriculation Secondary school Academic
degree

???? ??? ????? , 2002 ??"?, ?????? ????????
??????? ????? ????? ???? ??????
44
Participation rate (20-64) Israel OECD
countries
45
Unemployment rate by disability severity, age
20-64, 2002
People with disability
thereof
severe
Very severe
Total unemployed Unemployment
rate total man woman Jews Arabs Immigrants (1990)
48.3 20.5 18.4 22.6 20.6 19.8 21.4
14.3 21.6 20.5 22.9 23.0 9.8 20.7
34.0 20.0 17.6 22.5 19.7 23.7 21.6
46
Unemployment rate Israel and OECD countries
47
Integrating people with disability in employment
48
Barriers for integrating people with disability
in employment
Barriers at the national level No common
strategic vision of the units dealing with the
subject No continuity in employment possibilities
for people with disability Difficulty with
handling diversified population Long
rehabilitative process Competition between
employers, which employ people with disability
Barriers at the individual level Social
benefits Low human capital No life long
learning No access to funding
Barriers at the employers level No information No
incentives
49
Tools for promoting employers incentives

• Incentives for employers who directly or
  indirectly employ people with disability.
• Investment promotion law
• Programs for reducing employers discrimination
  and the obligation for integrating people with
  disability in society.
• Flexibility in working hours and pauses
• Tools for promoting employees (with disabilities)
  incentives
• Social allowance
• Education supplement
• Vocational training
• Programs for small businesses and
  Entrepreneurship

50
Legislation enforcement

• Minimum wage regulation employees employment
  ability
• Participation in funding workplace adjustment for
  employee with disability
• Enforcement of labor laws for employees with
  disability.

51
Minimum wage as employees employment ability
52
Summary conclusion

• Excluded population from the labor market has
  similar employment barriers low calcification
  and formal education, low desirability for
  potential employers.
• Programs for re-entrance to labor market (welfare
  to work programs)
• Tax and social allowance reform.
• Promoting the transition from education to work
  among youngsters.
• Life long learning especially for low skills
  workers.