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1 Labor Market Integration of First and Second Generation Black Immigrants in Israel and the United States Extended Abstract – Work in Progress Ameed Saabneh, University of Haifa Rebbeca Tesfai, Temple University Introduction The question of immigrant assimilation – whether immigrants acclimate to the new country and attain socioeconomic characteristics similar to the native-born – has long been a subject of interest to social science researchers. Research focusing on the labor market incorporation of immigrants finds that controlling for nativity characteristics – such as time in the host country and knowledge of the local labor market – and human capital characteristics (e.g. educational attainment and work experience) do not fully explain nativity gaps in labor market outcomes (Beckhusen et al. 2013, Bender and Roche 2013, Chiswick and Miller 2009, Matoo, Neagu and Özden 2008). The remaining gap is consistent with racial (Daneshvary and Schwer 1994, Frank, Akresh and Lu 2010, Tesfai 2017) and nativity discrimination (Corra and Borch 2014, Grant and Nadin 2007). However, researchers also hypothesize that some immigrants have difficulty assimilating to the labor market because they were not selected based on skills applicable to the host-country labor market (Cobb-Clark 2003, Constant and Zimmerman 2005). Without this selection, minority immigrants may be unable to navigate the host country’s racial hierarchy to achieve labor market success. Despite evidence that institutional structures impact immigrants’ labor market assimilation – few studies examine the impact of selection by comparing labor

2 market outcomes of immigrants from a single origin in multiple destinations (Lewin-Epstein et

• al. 2003). To learn how integration is impacted by nativity characteristics, race, and the

interaction between the two, we The Israeli labor market has been organized according to ethnic-national lines since the state was established in 1948. The primary divide is between Palestinians and Jews, with Palestinians

• ccupying a subordinate position relative to Jews (Lewin-Epstein and Semyonov 1992, Sa'di

1995), however ethnic stratification also prevails within the Jewish population. Jews of Middle Eastern or North African origin (Mizrahi Jews) have a lower position in the labor market – e.g. have lower occupational status and earn lower wages – than the dominant group, Jews of European descent (Ashkenazi Jews) (Cohen and Haberfeld 1998, Haberfeld and Cohen 2007). These ethnic disparities emerged in the first decade of Israel’s statehood and reproduced themselves over time, occurring among second and third generation immigrants (Bar-Haim and Semyonov 2015). When Ethiopians began emigrating to Israel en masse in the 1980s, they entered a well-established ethnic hierarchy and their socioeconomic characteristics indicate that they now comprise the lowest position. Compared to other Jewish groups, Ethiopians have lower levels of employment and higher level of residential segregation (Offer 2007). These characteristics are partly explained by their low human capital — they were mostly illiterate and lacked relevant skills for the local labor market when entering Israel (Offer 2004). However, Ethiopians’ social and economic positions are also explained by institutional discrimination and everyday racism they experience as a highly visible racial minority within the Jewish majority (Amit 2012, Ben-Eliezer 2004, Offer 2007). For example, as recently as August of 2016, Israel’s police commissioner suggested that it is natural to suspect Ethiopians of crime, essentially providing approval to racial profiling of Ethiopians in Israel (Beaumont 2016). It is clear that

3 Ethiopians’ experience in Israel is unique, so much so that the discourse of race and racial inequalities in Israeli sociological and immigration studies emerged only after the arrival of Ethiopian immigrants, e.g. the black Jews1 (Elias & Kemp, 2015). In the United States, by contrast, African immigrants do not comprise the totality of the black

• population. Until recently, African immigrants comprised a small portion of the black

population, however their population has approximately doubled every decade between 1970 and 2010 and there are now approximately two million foreign-born Africans in the United States (Gambino, Trevelyan and Fitzwater 2014). Due to their rapid population increase, African immigrants have come to redefine blackness in the United States. However, due to the racial hierarchy in the United States, even if African immigrants’ ethnic differences from U.S.-born blacks distinguish them from the native-born initially, the system imposes a black racial identity (Bashi and McDaniel 1997). Because blacks face racial inequality and discrimination in

• ccupational attainment and wages, their race may function as a barrier to their full assimilation

into the dominant culture (Anderson and Massey 2001). Due to the history of anti-black discrimination, employers prefer hiring native and immigrant non-blacks before considering blacks of any nativity (Bell, Marquardt and Berry 2014) and there is evidence that Africans recognize these barriers and work in solidarity with the native-born. Black migrants feel racial group attachment with native-born blacks due to shared experiences with racial discrimination (Benson 2006); African organizers have stated that Africans are “not a separate entity. [They] are

• black. [Their] kids are black. And this is [also their] struggle” (Sawyer 2015). Indeed,

1 Differences between Palestinian and Jews of all origins are usually discussed in terms of nationality, in which the

differences in political status are mostly emphasized. Race was not discussed until Ethiopians moved to Israel en masse.

4 researchers have found evidence that African immigrants are more likely to assimilate towards their native-born counterparts (Lee and Bean 2007). No research has yet compared the labor market assimilation patterns of African immigrants in contexts with and without a native-born black population. Consequently, it is unclear whether the existence of a native-born same race population determines whether African immigrants join an existing stratification system or if their arrival leads to the emergence of a new system entirely. There is evidence of a racially/ethnically stratified labor market in both Israel and the U.S. (Kposowa 2002, Kraus and Yonay 2000), which can impede minority immigrants’ labor market assimilation (Semyonov, Raijman and Maskileyson 2016). However, while African immigrants in Israel occupy a relatively lower position in the labor market (Semyonov, Raijman and Maskileyson 2015), they did not face assimilating into a native-born black community. Instead, they were the ones who first formed the black community of Israel. Due to the importance of racial stratification systems in determining immigrant assimilation, we aim to explain persistent race/nativity disparities in employment using the frameworks of segmented assimilation theory and racial stratification. Specifically, we use the pooled 2012-2016 U.S. Current Population Survey and the 2012-1015 Israeli labor force survey to conduct cross-national comparative analyses of African immigrant employment in two contexts. Background Segmented Assimilation Two theories of assimilation – based on the United States context – are consistently discussed in the literature examining nativity based labor market disparities: classic and segmented assimilation theory. Classic assimilation theory predicts that with time in the host country, ethnic

5 differences between the native and foreign-born decline and immigrants experience socioeconomic advancement (Anderson and Massey 2001). This theory is consistent with human capital theory (a theory largely discussed in the economics literature), which suggests that race/nativity differences in labor market outcomes are due to group differences in socioeconomic

• characteristics. Both human capital theory and classic assimilation theory envision that each new

generation represents, on average, a new stage of incorporation to the host country (Alba and Nee 1997), e.g. a step towards labor market parity with the dominant group. Classic assimilation theory was developed when most immigrants to the United States were

• European. Due to their shared racial characteristics with the U.S. majority, European immigrants,

regardless of ethnicity, were able to assimilate into the larger white population within a few

• generations. However, with changes in the racial composition of immigrants (i.e. the increase in

Hispanic and Asian immigrants since the passage of the Hart-Celler Act of 1965 and the increase in black immigrants beginning in the 1980s) classic assimilation theory no longer accurately describes assimilation patterns for three reasons. First, this conception of assimilation assumes that there is only one pattern of immigrant incorporation (Alba 2003b). In addition, it leaves no room for a positive role for race or ethnicity (Alba 2003b). Finally, it does not address institutional barriers to immigrant incorporation (Alba 2003a). Due to classic assimilation theory’s inability to predict today’s immigrant incorporation patterns, Portes and Zhou (1993) conceptualized segmented assimilation theory. Segmented assimilation theory suggests that there are institutionalized barriers to immigrant mobility, which are, in effect, impermeable for minority groups (Kasinitz et al. 2008). Consequently, immigrants’ incorporation into the host society may be a response to social and economic conditions (Foner 1997). Instead of the relatively uniform pattern predicted by earlier assimilation theories,

6 segmented assimilation theory posits three possible paths (Portes and Zhou 1993). The first pathway is classic assimilation (described above) leading to integration with the white middle

• class. Alternatively, immigrants may undergo rapid economic advancement while still preserving

co-ethnic ties and solidarity (selective assimilation). Finally, immigrants may experience downward assimilation – e.g. assimilation towards the underclass – the aspect of segmented assimilation we will test here. Segmented assimilation theory assumes that there are multiple pathways that signal differences between groups (Portes 1997). Accordingly, immigrant labor market incorporation patterns are not only related to time in the host country and human capital characteristics, but also their race and the neighborhoods in which they live. Residential context – e.g. living in high poverty neighborhoods that are mostly comprised of native-born racial minorities – is a key part

• f downward assimilation. Some researchers dispute the idea of downward assimilation because

the fact that parents begin at the very bottom of the occupational hierarchy makes upward mobility much more likely than downward mobility (Alba and Nee 2003, Farley and Alba 2002). Yet, both classic assimilation theory and downward assimilation highlight the importance of immigrants’ ability to become indistinguishable from the native-born population. In classic assimilation, this is a benefit to the immigrant who will join the middle-class majority. However, for black immigrants living in inner-city neighborhoods with large native-born black population, this means becoming indistinguishable from a marginalized community and assimilating toward their characteristics. In the United States, immigrants lose their ethnic identifiers over generations and are eventually classified by pre-existing native-born racial groups (Bashi and McDaniel 1997). Based on this theory, African immigrants are expected to undergo downward

7 assimilation because of the combination of their race and their residential proximity to native- born blacks. Much of the research outside of North America ignores race and focuses instead on immigration as the source of discrimination because these groups are “outsiders”. Since race has largely not been a concern outside of the United States, the role context plays in determining what race means for the everyday lives of immigrants is unclear. As Sub-Saharan Africans, Ethiopians are largely considered black. In Israel, there is no native-born black population towards which Ethiopian immigrants can assimilate. This may enable them to “escape” being pushed towards assimilating with a low-status group especially given their religious affiliation with the Jewish majority. Little is known about whether the presence of a same race native-born minority in the country is necessary to determine immigrants’ assimilation and, if so, the mechanisms by which their incorporation occurs. By comparing the labor market assimilation patterns of first and second generation African immigrants in Israel and the United States, our work will be the first to empirically test whether the presence of a native-born minority is related to African immigrants’ likelihood of achieving employment convergence with the native-born dominant group. Immigrant assimilation patterns may also be affected by the ways in which they are selected for entry into the host country. Although studies do not directly determine the size of selective immigration’s impact on labor market outcomes, nearly all research acknowledges its possible effect in the labor market (e.g. (Bashi and McDaniel 1997, Massey et al. 1993, Quillian 1999)). Economically motivated immigrants are expected to be self-selected for traits that positively influence labor market outcomes (Corra and Kimuna 2009, Kollehlon and Eule 2003, Model 1995); therefore labor market assimilation will vary based on how immigrants enter the host

8

• country. While previous research recognizes the importance of selection in immigrants’ labor

market incorporation, no research compares countries with and without immigrant selection (such as the U.S. and Israel) and therefore cannot determine the ways in which immigrant selection impacts assimilation. Racial Stratification In both Israel and the US, a main stratifying factor in the labor market is education; therefore, racial and ethnic inequalities in educational attainment (Cohen and Haberfeld 2007, Kao and Thompson 2003) are usually expressed in the form of racial inequalities in the attainment of high-status jobs (Semyonov, Raijman and Maskileyson 2016). Yet, racial inequalities in

• ccupational attainment cannot be fully attributed to educational gaps. Immigration to a racially

stratified society may mean that racial boundaries will remain impermeable and upward mobility stays out of reach for many in the second generation (Alba 2003a). Race/ethnicity exerts a considerable influence on employers’ hiring decisions (Thomas 2010). Racial and ethnic minorities face limited opportunities in the labor market because of discrimination from employers (or employers’ perception that race signals lower productivity) (Pager and Shepherd 2008). African immigrants are particularly marginalized in the labor market (Creese and Wiebe 2009) and experience considerable devaluation of foreign credentials (Dodoo 1997). That is, degrees earned in African are largely discounted by U.S. employers either by maintaining barriers to recognizing these credentials or by disregarding the value of foreign education outright (Adamuti-Trache 2014). Due to these disadvantages, it could be argued that African immigrants demonstrate social mobility patterns similar to native-born blacks. However, this argument reduces their status to blackness only and disregards other characteristics – such as

9 social or economic capital – which would enable them to achieve social mobility similar to other non-black immigrants. That is, it does not allow for the possibility that African immigrants are able to skillfully navigate the host country labor market and therefore change the local stratification system. The interaction between immigration status, racial affiliation, and racial composition in the host county may affect the incorporation of African immigrants in the labor market and may be indicative of African immigrants changing the local racial/ethnic stratification system. In places where there is a native-born black population, African immigrants may have better labor market

• utcomes because they experience less discrimination in the labor market than the native-born.

Employers have a favorable perception of African immigrants as having a superior work ethic, especially compared to native-born blacks (Dodoo and Takyi 2002, Foner 1985) putting them at an advantage in the host country labor market. However, when there is no native-born black group to which African immigrants can be compared, the negative perceptions of blacks may lead to a reluctance to hire black immigrants (Thomas 2003). By examining the assimilation of African immigrants in Israel and the United States, we test the role of race (specifically blackness) in labor market stratification. The existence of a racially stratified society, such as the case in the US and Israel, has significant implications for immigrants’ assimilation. It implies that different ethnic groups of immigrants assimilate into particular races (Anderson and Massey 2001). For African immigrants in the U.S., the fact that native-born blacks face racial inequality and discrimination in occupational attainment and wages may function as a barrier to their full assimilation into the dominant culture (Anderson and Massey 2001). African immigrants to Israel, however, face a very different reality. Although Israel is an ethnically stratified society, where African immigrants occupy a relatively lower

10 position in the labor market (Semyonov, Raijman and Maskileyson 2015), they did not face assimilating into a native-born black community. Instead, they were the ones who first formed the black community of Israel. Thus, we compare the labor market assimilation patterns of African immigrants in contexts with and without a native-born black population. To summarize, this study investigates African immigrants’ impact on the local stratification system taking into account two major factors that are assumed to affect their assimilation: selectivity and the presence of a native-born black population. It asks the following questions: Does blackness operate differently in the labor market across contexts? Specifically, does the presence of a native-born minority group affect immigrants’ likelihood of employment? Data and Methods We utilize two national level datasets for the analysis. The first is the pooled 2012-2016 United States Current Population Survey and the second is the combined 2012-2015 Israeli Labor Force

• Survey. We limit our U.S. sample to individuals who are native-born white or black and Sub-

Saharan African-born black to determine variation in the likelihood of labor force participation and occupational status. In Israel, the sample is limited to native-born Ashkenazi Jews, that is Jews of European origin and the socioeconomically advantageous group, native-born Mizrahi Jews, that is Jews of North African and Middle Eastern origins, and African-born blacks, i.e., Ethiopian Jews who comprise the entirety of Israel’s black population. Dependent Variables: Our dependent variables are labor force participation and occupational

• status. Labor force participation is defined the same way in both datasets (either working or

11 actively looking for work), however occupational status varies across place. In order to make

• ccupational status comparable across datasets, we utilize the 2010 U.S. census occupational

classification code and build a crosswalk between this U.S. census definition and the 2008 International Standard Classification of Occupations (ISCO-08). The classification of

• ccupations in the Israeli Labor Force Survey is also converted to the ISCO-08 code. Using this

crosswalk, we have a standard rating of occupational classification across place. The ISCO-08 codes are then translated to the International Socio-Economic Index (ISEI-08) of occupational status (Ganzeboom, 2010). However, the occupational status data is only preliminary. The publicly available Israeli Labor Force Survey data only provides two digit occupational codes, which are much less detailed than the three and four digit codes available in the U.S. Current Population Survey. We have a requested detailed occupational status data, however the Israeli results presented are based on two digits rather than four digit occupational codes. Independent Variables: We include a number of individual, household, and context variables to control for various characteristics that may play a role in labor market experiences. Individual variables that could impact employment are age, sex, and educational attainment. In addition, we include marital status, number of children, and number of children below age 5 because family characteristics play a significant role in employment experiences. While we do not include local work experience in the labor force participation model, we do include this variable when estimating occupational status. To gauge comparable work experience (i.e. work experience

• btained in the same country), we estimate work experience for the native-born using the Mincer

experience measure (age – years of education – 6). Among the foreign-born, host country work experience is measured as the Mincer measure if their years of experience is less than or equal to

12 the amount of time they lived in the host country. However, if they have more estimated work experience than years in the host country, host-country experience is measured as years in the host country. Context background variables that we control for are state and metropolitan central city status. Methods: Using propensity score (PS) matching, African immigrants are compared to each of the native-born groups (whites and blacks in the U.S. and Ashkenazi and Mizrahi Jews in Israel) in labor force participation and occupational status. The propensity score is defined as the probability of being an African immigrant (vs. the native-born group) given all of the background variables, and it is estimated using a logistic regression model. Using the estimated propensity score, each African immigrant was pair-matched with the one most similar native- born individual (Rosenbaum 2010: pp. 163–184). Optimal pair matching was applied, and finding an optimal pair match was performed by the Hansen’s pairmatch function in the Optmatch package available in the R code (Hansen 2007). While both regression models and matching may be useful in adjusting for imbalance between African immigrant and native-born groups, in our case, matching is expected to outperform regression analysis for two reasons. First, unaided by matching, a model comparing a large native-born sample with a small sample of African immigrant would disproportionally represent the majority, native-born group with relatively higher socioeconomic status over the immigrant minority with relatively lower socioeconomic status (Daniel et al. 2008). The pair-matching procedure results in a sample comprised of the same number of African immigrants and native- born individuals, 3,619 for the U.S. and 7,203 for Israel. Second, using pair matching, the

13 comparison between immigrant and native-born persons is always weighted by, and refers to, the same focal group, i.e., the African immigrants. Overall, the applied PS matching resulted in highly comparable groups in the observed background variables. That is, after matching, the differences between African immigrants and the comparison native-born group, in every background variable, is lower than it was before matching. Next to achieving matched samples, comparisons of immigrants with native-born individuals in labor force participation relies on a logistic model and the gaps participation rates are presented in terms of adds ratios. The comparison in occupational status relies on a linear model and the gaps in the socioeconomic index (ISES-08) are presented in term of mean differences. We estimated these gaps before matching, which represent the crude, unadjusted gaps, and after matching, which represent the adjusted gaps. Preliminary Results Crude estimates of labor force participation and occupational status are presented in table 1. Before controlling for any socioeconomic characteristics, we find that African immigrants are more likely to be in the labor force than both U.S. born whites and blacks: 81% are in the labor force compared to 79.1% and 70.5% for native-born whites and blacks, respectively. However, this is not true in Israel, where African immigrants are least likely to be in the labor force: 79.3% compared to 85% and 84.2% among Ashkenazi and Mizrahi Jews, respectively. Despite African immigrants’ advantage relative to U.S.-born blacks in terms of labor force participation, they seem to be in the same jobs with identical occupational status means. Both groups are in lower status jobs than U.S.-born whites. African immigrants also have the lowest

14

• ccupational status in Israel, however, the disadvantage in Israel is much larger. The mean of

their occupational status is approximately half that of Ashkenazi Jews (the dominant group) and 18 points lower than Mizrahi Jews. Table 1: Crude estimates of labor force participation and occupational status, by immigration- race/ethnicity group, U.S. and Israel, 2012-2016

Labor force participation (%) Occupational Status (means) U.S. Israel U.S. Israel Immigration-race/ethnicity group African Immigrants 81.0 79.3 42.2 31.2 Native-born dominant group: U.S.- born whites/Ashkenazi Jews 79.1 85.0 49.1 49.3 Native-born minority: U.S.-born blacks/Mizrahi Jews 70.5 84.2 42.2 58.6

Table 2 presents the results of comparisons between African immigrants and two native-born groups in labor force outcomes, in Israel and the US., and provides adjusted gaps, derived from the matched samples, in terms of odds ratio for participation in the labor force and mean difference for occupational status. These estimates are compared to the crude ones, derived from the unmatched samples. The U.S. results show that there is no significant difference between native-born whites and African immigrants in terms of labor force participation (odd ratio=1.1, p>.05), while African immigrants are significantly more likely to be in the labor force than U.S.- born blacks (odds ratio=1.12, P<.01) (see table 2). However, rather than reducing the gap

15 between groups, our results show that controlling for background characteristics actually leads to a larger and more significant disadvantage for African immigrants’ occupational status relative to both U.S.-born whites, a gap of 22.8 scores, and blacks, a gap of 4.1 scores (see table 2). This is the opposite pattern of that observed in Israel where controlling for socioeconomic and background characteristics reduces the occupational status gap between African immigrants and both native-born groups included in the analysis. A gap of 27.5 scores between African immigrants and the Ashkenazi group is reduced to 10.7, yet remains statistically significant (mean difference= -10.7, p<.01). A gap of 18.2 scores between African immigrants and the Mizrahi group is reduced to 7.0, and remains statistically significant (mean difference= -7.0, p<.01). Table 2: Crude and adjusted gap between African immigrants and native-born groups, in labor force participation and occupational status, U.S. and Israel, 2012-2016

Odds ratio of labor force participation Occupational status mean difference Crude Adjusted Crude Adjusted U.S. Africans vs. U.S.-born whites 1.13** 1.11

• 6.9**
• 22.8**

Africans vs. U.S.-born blacks 1.8** 1.21** 0.04

• 4.1**

Israel Africans vs. Ashkenazi Jews 0.72** 1.05

• 27.5**
• 10.7**

Africans vs. Mizrahi Jews 0.68** 1.16*

• 18.2**
• 7.0**

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