ABSTRACT
Commuting of Arab workers into the larger labor markets dominated by the majority Jewish population leads to ethnic competition over a relatively fixed pool of jobs. Labor force participation of Arab women in the market economy has only recently begun to rise. The dependency of the subordinate population on resources controlled by the superordinate group serves to reproduce the system of ethnic inequality both at the individual and at the collective levels. The Israeli dilemma presented in our study reflects the uncertainty regarding the relationship between ethnic resource competition and accumulation, and the possibility of open conflict. The Israeli dilemma stems from the view that the aforementioned principles are essentially incompatible. From a competition perspective it is significant to examine the effect of discrimination against Arabs on the economic well-being of Jewish employees. Some proponents of the competition approach argue that increasing intergroup competition and greater resource parity are likely to lead to ethnic mobilization and conflict.
