The authors present ample evidence that prices and wages in the Israeli-Arab sector are lower than in Jewish localities. The authors intend their study to be the first of a series of studies examining the rates of change over time in these differentials, and specifically, to discover indications of convergence between the sectors. This study focuses on the market for fruit and vegetables: Data show that over the period between 1993 and 2003, sectoral prices did converge. Around 2000, the year of the second intifada, convergence was discontinued temporarily and subsequently resumed.
http://www.cbs.gov.il/www/publications/pub14_e.pdf
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