The study decomposes the effect on the average daily wages, days worked, and employment.

It also illuminates the distributional impacts on different groups in the economy with respect

to potential heterogeneous effects on daily wages and days worked. Closure has a negative

and significant effect on the wages, workdays, and employment outcome in the West Bank and Gaza Strip. The effect differs between the two regions. The external closure appears to have been more detrimental for residents in the Gaza Strip relative to West Bankers. Furthermore, the Israeli demand for Gazan workers appears to have diminished, indicating an Israeli policy of political and economic separation of the Gaza Strip.

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Paper provided by Örebro University, Swedish Business School in its series Working Papers with number 2004:4.

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Length: 31 pages
Date of creation: 29 Sep 2004
Date of revision:
Handle: RePEc:hhs:oruesi:2004_004

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Postal: Örebro University, Swedish Business School, SE - 701 82 ÖREBRO, Sweden
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Web page: http://www.oru.se/templates/oruExtDeptIntroPage.aspx?id=3059
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Related research

Keywords: Labour market; Palestinian labour force; Israel; closure policy; wage differentials; days worked; employment;

Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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