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Rural Wage Employment: Is There a Premium for Agriculture?

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  • Daoud Yousef

    (Department of Economics, Birzeit University)

  • Fallah Belal

Abstract

This paper investigates the determinants of rural and non-rural wages using the quarterly Labor Force Survey (LFS) collected by the Palestine Central Bureau of Statistics (PCBS). We estimate the wage equation for rural and non-rural workers controlling for structural, socioeconomic, and political factors. Results show that employment in agriculture reduces wages for both rural and non-rural workers. The work in Israel (premium) is shown to raise average wages by 60-70% for non-rural workers and 40-50% for rural workers. Despite this finding, the paper recommends reducing dependence on employment in Israel as a long-term solution to unemployment and to improve higher education for both rural and non-rural workers.

Suggested Citation

  • Daoud Yousef & Fallah Belal, 2014. "Rural Wage Employment: Is There a Premium for Agriculture?," Working Papers 837, Economic Research Forum, revised Jun 2014.
    • Handle: RePEc:erg:wpaper:837
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    References listed on IDEAS

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