Strategies of economic endurance: Israeli Palestinians in the ethnic economy and the public sector

This chapter reports the results of comparative analysis of the socioeconomic achievements (income, occupational prestige, standard of living, job power characteristics) of four groups of Palestinian citizens of Israel: employees in the Palestinian-owned businesses, employees in the dominant (Jewish-owned) economy, employees in the public sector, and self-employed workers. The findings indicate that Israeli Palestinians have two paths to overcome barriers for advancement in the main economy. The first option, economic entrepreneurship, is realized mostly by joining a family business, while the second option, public employment, is more meritocratic and depends upon formal education. Private-sector employees are almost equally disadvantaged in both segments of the economy. The Palestinian economy, however, is important for offering the possibility of self-employment, and given the unfeasibility of assimilation, the ethnic economy is certainly vital for the well-being of Palestinians. We argue that this situation is typical to ethnic minorities in post-colonial societies, in which ethnic separation is deeply engraved into the social structure.