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Determinants of Unemployment: Empirical Evidence from Palestine

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  • Abugamea, Gaber

Abstract

This study analyzes the determinants of unemployment in Palestine over the period 1994-2017. It employs OLS econometric analysis to examine the relationship between unemployment and the variables of GDP, inflation, labor force, external trade and restrictions on labor movement. Empirical results show the variables of GDP, inflation, labor force, external trade, as a macroeconomic determinants, and restrictions on labor movement, as an institutional one, are main determinants of unemployment in Palestine. Whilst GDP impacted unemployment significantly with a negative effect, it is found inflation, labor force and restrictions on labor movement impacted unemployment significantly and with a positive effect. Also, external trade not affected unemployment significantly. The CUSUM and CUSUMQ are showing that the model is structurally stable within 5 % of critical bound. The study recommends a number of policy implications.

Suggested Citation

  • Abugamea, Gaber, 2018. "Determinants of Unemployment: Empirical Evidence from Palestine," MPRA Paper 89424, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:89424
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    References listed on IDEAS

    as
    1. Ismael, Mohanad & Sadeq, Tareq, 2016. "Does Phillips Exist in Palestine? An Empirical Evidence," MPRA Paper 70245, University Library of Munich, Germany.
    2. Ahmed SALAMA, 2017. "Analysis Of Unemployment Challenges In Palestine Between 2000 And 2015," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 15, pages 381-387, December.
    3. Gaber H. Abugamea, 2010. "The Competitiveness of the Palestinian Foreign Trade: A Cointegration Analysis," Working Papers 541, Economic Research Forum, revised 09 Jan 2010.
    4. Abiodun O. Folawewo & Oluwafemi M. Adeboje, 2017. "Macroeconomic Determinants of Unemployment: Empirical Evidence from Economic Community of West African States," African Development Review, African Development Bank, vol. 29(2), pages 197-210, June.
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    Cited by:

    1. Abugamea, Gaber, 2019. "Determinants of demand for higher education in palestine, the case of gaza strip 1994-2017," MPRA Paper 96257, University Library of Munich, Germany.

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    More about this item

    Keywords

    ; Macroeconomic variables; Restrictions on Labor Movement; OLS; Palestine;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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