Migration, ethnicity, and inequality: Homeownership in Israel

The present study addresses the issue of ethnic inequality in homeownership. We start out by addressing the social significance of homeownership as it relates to material wellbeing, sense of security, perceived "stake in the system," and social assimilation. The empirical analysis focuses on immigrants to Israel and examines the extent to which length of residence in the host society, as well as the period of migration, affect ethnic inequality in homeownership. In order to separate the effects of specific period of migration from duration of residence, we pooled data from three household expenditure-surveys carried out between 1975 and 1993. The findings confirmed the positive effect of length of residence in the host society on homeownership, but also revealed unique period effects. These are linked to the political economy of Israel and to the role played by the stale in shaping housing opportunities. The findings also revealed substantial ethnic group differences in homeownership. The source of these disparities and their consequences highlight stratification processes that are independent of labor market achievements.