Labor Market Integration of Minority Women: The Role of Religiosity, Residential Area and Their Interaction Among Arab Muslim and Christian Women in Israel

The integration of ethnoreligious minorities into labor markets, particularly among women, is a key contemporary issue. The present study examines the associations among labor market outcomes (employment status, job type—full-time/part-time, wages, and rank), level of religiosity and residential area (in or outside ethnic enclaves) among Arab Muslim and Christian women in Israel. Both groups reside in predominantly Jewish and Arab localities but differ in terms of religiosity, with Muslims being substantially more religious. Utilizing official data from the Social Survey of the Israeli Central Bureau of Statistics, covering a decade between 2013 and 2022, with a sample of 4112 participants, the study finds that both residential area and religiosity are associated with labor market outcomes, particularly among Muslim women. Religiosity is negatively associated with employment quality measures (job type, wages, and rank), while residing in predominantly Jewish localities is positively associated with labor market participation. An interaction effect is observed regarding wages and type of position (full/part time). This study contributes to theory by introducing residential area as a new factor explaining the negative association between religiosity and labor market outcomes, as well as advancing agent-based approaches to study ethnic enclaves.