ABSTRACT
This chapter investigates the last of the three cases where a pattern of ethnic segregation and stratification has been established in modern times and persists still today. It discovers clear evidence that they recognize the huge problems associated with the present situation and would like very much to see a peaceful solution. The formation of the State of Israel and its changes through the first half century of its existence are a paradigmatic example of the persistent power of ethno-national identifications, and their effects on political processes and conflicts in the modern world. Immigration and the increment of internal ethnic differentiation alone cannot explain the rise of inequality in Israel. A careful quantitative analysis about labour market discrimination and income inequality in Israeli society found a clear hierarchy in the stratification system with Ashkenazim at the top of the socio-economic ladder, Mizrahim in the middle and Arab citizens at the bottom echelons of the hierarchy.
