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The Impact of Employment in Israel on the Palestinian Labor Force

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  • Haggay Etkes

    (Bank of Israel)

Abstract

This study provides circumstantial evidence for the impact of permits for employment in Israel on the Palestinian labor force in the West Bank during the late Intifada period and its aftermath (2005–2008). The study utilizes a unique dataset that merges data from the Palestinian Labor Force Survey with Israeli administrative data on permits for employment in Israel. The study quantifies the increase in Palestinian employment in the Israeli and Palestinian economies and the decrease in Palestinian unemployment, as well as the drop in the return to schooling which coincided with an increase in the number of permits issued. These results reflect the short-run benefits for the un-skilled Palestinian labor force as well as the adverse long-run effects of Palestinian employment in Israel on human capital accumulation.

Suggested Citation

  • Haggay Etkes, 2011. "The Impact of Employment in Israel on the Palestinian Labor Force," Bank of Israel Working Papers 2011.11, Bank of Israel.
    • Handle: RePEc:boi:wpaper:2011.11
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    File URL: https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_2011.11.pdf
    File Function: First version, 2011
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    Cited by:

    1. Assaf Zimring, 2015. "Testing the Heckscher-Ohlin-Vanek Theory with a Natural Experiment," Upjohn Working Papers 15-243, W.E. Upjohn Institute for Employment Research.
    2. Assaf Zimring, 2019. "Testing the Heckscher–Ohlin–Vanek theory with a natural experiment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(1), pages 58-92, February.
    3. Assaf Zimring, 2015. "Testing the Heckscher-Ohlin-Vanek Theory with a Natural Experiment," Working Papers 642, Research Seminar in International Economics, University of Michigan.

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