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This paper explores the patterns of economic integration of Arab women in Israel. Specifically, it examines the extent to which development, as well as cultural and structural constraints, affect labour-force participation and gender-linked occupational differentiation of women who belong to an ethnic minority which is both culturally traditional, and socially and politically subordinate. A comparative analysis is carried out across 42 major communities in which Arabs reside. First, we study the effect of local labour-market structure and social composition on labour-force participation. The findings reveal that female employment tends to increase with the size of the agricultural sector, and to decrease with limited labour-market opportunities. Employment is additionally affected by social and cultural factors such as fertility and religious affiliation. Further analysis examines gender-linked occupational differentiation. We find that occupational differentiation in the Arab labour-force is substantial, with women generally holding the more prestigious and higher status occupations. Differentiation and the occupational advantage of women is strongly related to female labour-force participation. As the proportion of employed women rises, more women are channelled into manual and service jobs and their occupational advantage diminishes.
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