Wage Gap Paradox: The Case of Immigrants from the FSU in Israel

The purpose of this article was to investigate whether some groups of immigrants are particularly disadvantaged in their earnings compared to other population groups, to what extent wage gaps arise from discriminatory remuneration, and how immigrants’ wages change over time. The contribution of this study is twofold: it conceptualizes a wage gap paradox and delineates the indicators of discrimination in terms of earnings. Data from the 2010‐2014 Social Surveys in Israel were used. The results revealed evidence of a wage gap paradox for immigrants from the former Soviet Union: the wage gaps between them and other population groups do not close during time living in the host country, despite the high level of their formal credentials. Applying the Blinder‐Oaxaca decomposition, the study revealed that a sufficient part of the wage gap is attributable to discrimination, which prevented immigrants from full economic integration.