Immigrants in a restructuring economy: A partial test of theories

The article addresses the occupational integration of immigrants from the former USSR into the economy of the city of Tel Aviv. This process is examined from a structural perspective, which focuses on the location of immigrants as a group in the restructuring economy of Israel's main business centre. Data from labour force surveys and income surveys conducted in 1992 and 1994 by Israel's Central Bureau of Statistics are used to analyse the distribution of veteran Israelis and recent immigrants among economic sectors and occupations. Despite their superior academic and professional qualifications, immigrants were underrepresented in the business and financial services sector, the leading sector in post-industrial economies. They were most strongly represented in the personal services sector, where they replaced Palestinian workers. The findings lend support to both the restructuring and replacement hypotheses.