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The impact of employment in Israel on the Palestinian labor force (2005–08)

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  • Etkes, Haggay

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.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34681.

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Date of creation: Nov 2011
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Handle: RePEc:pra:mprapa:34681

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Keywords: Palestinian; labor; employment; Israel;

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  1. Antonio Ciccone & Elias Papaioannou, 2005. "Human Capital, the Structure of Production, and Growth," Working Papers 245, Barcelona Graduate School of Economics.
  2. Angrist, Joshua D, 1996. "Short-Run Demand for Palestinian Labor," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 14(3), pages 425-53, July.
  3. Efraim Benmelech & Claude Berrebi & Esteban F. Klor, 2010. "The Economic Cost of Harboring Terrorism," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(2), pages 331-353, April.
  4. Rosenzweig, Mark R., 2010. "Microeconomic Approaches to Development: Schooling, Learning, and Growth," Working Papers, Yale University, Department of Economics 79, Yale University, Department of Economics.
  5. Daniel Cohen & Marcelo Soto, 2001. "Growth and Human Capital: Good Data, Good Results," OECD Development Centre Working Papers 179, OECD Publishing.
  6. Flabbi, Luca & Paternostro, Stefano & Tiongson, Erwin R., 2007. "Returns to education in the economic transition : a systematic assessment using comparable data," Policy Research Working Paper Series 4225, The World Bank.
  7. Angrist, Joshua D, 1995. "The Economic Returns to Schooling in the West Bank and Gaza Strip," American Economic Review, American Economic Association, American Economic Association, vol. 85(5), pages 1065-87, December.
  8. Leonid V. Azarnert, 2012. "Guest‐worker Migration, Human Capital and Fertility," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 16(2), pages 318-330, 05.
  9. Tushar K. Nandi, 2010. "Conflict, Economic Shock and Child Labour in Palestine," HiCN Working Papers 74, Households in Conflict Network.
  10. Hani Mansour, 2010. "The Effects of Labor Supply Shocks on Labor Market Outcomes: Evidence from the Israeli-Palestinian Conflict," Discussion Papers of DIW Berlin 1014, DIW Berlin, German Institute for Economic Research.
  11. Astrup Claus & Dessus Sebastien, 2005. "Exporting Goods or Exporting Labor?: Long-term Implications for the Palestinian Economy," Review of Middle East Economics and Finance, De Gruyter, De Gruyter, vol. 3(1), pages 38-60, April.
  12. Schiff, Maurice, 2004. "Trade Policy and Labor Services: Final Status Options for the West Bank and Gaza," IZA Discussion Papers 1029, Institute for the Study of Labor (IZA).
  13. Sami Miaari & Robert Sauer, 2011. "The labor market costs of conflict: closures, foreign workers, and Palestinian employment and earnings," Review of Economics of the Household, Springer, Springer, vol. 9(1), pages 129-148, March.
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