Study: Arabs retire from work at age of 40-44Bank of Israel survey reveals
Israeli Arabs retirement age lower than in European, Arab countries. One
reason is high rate of Arabs employed in jobs requiring physical fitness
Ynet Published: 11.19.09, 15:16 / Israel Business
www.ynetnews.com/articles/0,7340,L-3807801,00.html

Only 20% of Arab women in Israel work, while Arab men retire from the
workforce at the age of 40 to 44, according to a new study on the
participation rate of Israel's Arabs in the workforce.

The survey was conducted by Prof. Eran Yashiv and Nitza Kasir of the Bank of
Israel's Research Department. The researchers note that these two patterns
cannot be explained by the regular factors - such as age, education, marital
status, number of children and the income of the other family members.

According to the researchers, an important factor explaining Arabs'
retirement from the workforce at a relatively early age is the high rate of
Arabs employed in professions requiring physical fitness.

In light of the fact that physical ability declines with age, the
participation in these professions drops. The fact that many foreign workers
are employed in Israel allows employers to replace the Arab workers whose
physical fitness has declined with other laborers.

The researchers also note that Arab men have the option to receive an income
from various governmental aid organizations, which allows them to retire
once their physical abilities diminish. This is joined by characteristic
influences of the Arab society, including the common phenomenon of children
supporting their parents from an early age.

Working less in southern Israel

The rest of the characteristic influencing the participation of Arab men in
the workforce are similar to those usually found in research literature,
including the positive link between the education level and the rate of
participation and the negative affect of residing in the south.

Compared to the employment of Jews and compared to international employment
rates, Arab workers' early retirement is unusual. "Among the Jews in Israel,
among the Palestinians, in Western economies and in economies in Muslim and
Arab countries, one can see the 'classic' participation profile over life
which is in the shape of a hump - going up, stabilizing and falling
throughout life," the researchers explain.

"The drop in the employment of men in Europe begins after the ages of 50 to
54, while in the US there is a more gradual drop after the ages of 55 to 59.
Among Israeli Arabs the hump is shorter and sharper, both in relation to
Palestinian men in the territories and to other Arab and Muslim countries."

Cultural influences

As for the employment of Arab women, the study found a big variance in the
participation rate, related to differences between "modern" and
"traditional" women in terms of education, marital status, number of
children and different skills, like English and computers.

The researchers noted that they had found a dichotomy in the employment
patterns of Arab women: "Traditional" women hardly take part in the labor
market, which explains the low participation rate on an international level.

There is a significant rate of "modern" women taking part in the labor
market, which explains the rise in the participation level over time
alongside the rise in education rates and other cultural changes.

"There is a finding that women's participation rates are much different than
what is common in Western countries and among Jewish women in Israel, and
are not significantly different than the rates in Muslim countries. This
finding reinforces the conclusion that this is the result of cultural
influences."

The researchers note that these findings stress the need for a governmental
policy which will help raise women's participation levels and reduce men's
early retirement among Israeli Arabs, particularly in light of the negative
ramifications of the participation patterns on the Israeli Arab society's
social-economic situation.

"There is room to consider a variety of policy moves to increase Arabs'
participation in the workforce," the researchers state, including "reaching
a wider occupation dispersal of the Arab men, in order to prevent the
over-concentration in physical professions, in which retirement is early -
increasing the resources for elementary and post-primary education and
higher education."

Other moves include "aiding in retraining and career change ahead of the
retirement from physical professions and working to remove obstacles in the
demand for skilled workers among Arabs; encouraging the employment of
Israeli Arabs instead of foreign workers; encouraging the employment of
women through education by increasing the resources for education, as well
as subsidizing daycare centers; encouraging the physical accessibility of
workplaces by investing in a suitable transportation infrastructure and
providing transportation to the workplace."