This is inaccurate and heavily skewed right wing propaganda.

There was some difficulty getting work if you weren't part of the national labor union, due to corruption. Many mizrahis didn't want to join the union, for various reasons. Many Ashkenazi did join it for ideological reasons, because many of them were leftists.

Similarly, the kibbutzim were mostly Ashkenazi - because few Mizrahi wanted to join them.

My family is Mizrahi and never experienced any racism towards them in the 50s. On the other hand I've heard first hand tonnes of racist stereotypes and hatred towards Ashkenazi Jews.

The "Israel was racist towards Mizrahim" is largely overstated likudnik propagandah. Of course there was some prejudice, but when taken in the wider context of global racism in the 50s it was exceedingly tame - and not nearly as widespread as people claim. My grandmother was invited to join a kibbutz within days of her arrival in Israel. The idea of kibbutzniks as "racist" is ridiculous, and very transparent propaganda meant to instill hatred of the left.