LAUSR

The article investigates the dimensions of life satisfaction of immigrant and ethnic minorities comparing them with the majority population. It constructs a theoretical framework, taking into account both pecuniary and non-pecuniary dimensions of welfare. This study is based on the data of the Social Survey, administered by the Israeli Central Bureau of Statistics. Immigrants in this study are regarded as a migrant minority and Israeli-born Arab citizens as an ethnic minority. The results reveal significant life satisfaction gaps between the groups, which can be partially explained by the value of work per se and the value of leisure activities. Applying the Blinder-Oaxaca decomposition technique, the study revealed that the gap in life satisfaction could be attributed both to the differences in pecuniary and non-pecuniary resources for each group, and to different returns on resources. Policy targeted on increasing the economic possibilities of minority groups would decrease the life satisfaction gaps.