Advanced Search
MyIDEAS: Login to save this paper or follow this series

The labor market impact of mobility restrictions : evidence from the West Bank

Contents:

Author Info

  • Cali, Massimiliano
  • Miaari, Sami H.

Abstract

Using data on Israeli closures inside the West Bank, this paper provides new evidence on the labor market effects of conflict-induced restrictions to mobility. To identify the effects, the analysis exploits the fact that the placement of physical barriers by Israel was exogenous to local labor market conditions and uses a measure of conflict intensity to control for the likely spurious correlation between local unrest, labor market conditions, and the placement of barriers. The study finds that these barriers to mobility have a significant negative effect on employment, wages, and days worked per month. The barriers had a positive impact on the number of hours per working day. These effects are driven mainly by checkpoints while other barriers, such as roadblocks and earth mounds, have a much more limited impact. Only a tiny portion of the effects is due to direct restrictions on workers'mobility, suggesting that these restrictions affect the labor market mainly by depressing firms'production and labor demand. Despite being an underestimation of the actual effects, the overall costs of the barriers on the West Bank labor market are substantial: in 2007, for example, these costs amounted to 6 percent of gross domestic product. Most of these costs are due to lower wages, thus suggesting that the labor market has adjusted to the restrictions more through prices than quantities.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2013/05/22/000158349_20130522112115/Rendered/PDF/WPS6457.pdf
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6457.

as in new window
Length:
Date of creation: 01 May 2013
Date of revision:
Handle: RePEc:wbk:wbrwps:6457

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: Labor Markets; Labor Policies; Transport Economics Policy&Planning; Markets and Market Access; Banks&Banking Reform;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Di Maio, Michele & Nandi, Tushar K., 2013. "The effect of the Israeli–Palestinian conflict on child labor and school attendance in the West Bank," Journal of Development Economics, Elsevier, vol. 100(1), pages 107-116.
  2. Angrist, Joshua D, 1995. "The Economic Returns to Schooling in the West Bank and Gaza Strip," American Economic Review, American Economic Association, vol. 85(5), pages 1065-87, December.
  3. Gutiérrez-i-Puigarnau, Eva & van Ommeren, Jos, 2010. "Labour Supply and Commuting," IZA Discussion Papers 4798, Institute for the Study of Labor (IZA).
  4. Cogan, John F, 1981. "Fixed Costs and Labor Supply," Econometrica, Econometric Society, vol. 49(4), pages 945-63, June.
  5. Guy Michaels, 2006. "The Effect of Trade on the Demand for Skill - Evidence from the Interstate Highway System," CEP Discussion Papers dp0772, Centre for Economic Performance, LSE.
  6. Mansour, Hani, 2010. "The effects of labor supply shocks on labor market outcomes: Evidence from the Israeli-Palestinian conflict," Labour Economics, Elsevier, vol. 17(6), pages 930-939, December.
  7. Sami H. Miaari & Asaf Zussman & Noam Zussman, 2010. "Ethnic Conflict and Job Separations," HiCN Working Papers 76, Households in Conflict Network.
  8. Angrist, Joshua D, 1996. "Short-Run Demand for Palestinian Labor," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 425-53, July.
  9. Patacchini, Eleonora & Zenou, Yves, 2005. "Spatial mismatch, transport mode and search decisions in England," Journal of Urban Economics, Elsevier, vol. 58(1), pages 62-90, July.
  10. Edward Miguel & Gerard Roland, 2006. "The Long Run Impact of Bombing Vietnam," NBER Working Papers 11954, National Bureau of Economic Research, Inc.
  11. Sami Miaari & Asaf Zussman & Noam Zussman, 2012. "Employment Restrictions and Political Violence in the Israeli-Palestinian Conflict," Economics of Security Working Paper Series 59, DIW Berlin, German Institute for Economic Research.
  12. Tom Bundervoet & Philip Verwimp & Richard Akresh, 2009. "Health and Civil War in Rural Burundi," Journal of Human Resources, University of Wisconsin Press, vol. 44(2).
  13. Nathaniel Baum-Snow, 2010. "Changes in Transportation Infrastructure and Commuting Patterns in US Metropolitan Areas, 1960-2000," American Economic Review, American Economic Association, vol. 100(2), pages 378-82, May.
  14. Shemyakina, Olga, 2011. "The effect of armed conflict on accumulation of schooling: Results from Tajikistan," Journal of Development Economics, Elsevier, vol. 95(2), pages 186-200, July.
  15. Efraim Benmelech & Claude Berrebi & Esteban F. Klor, 2009. "The Economic Cost of Harboring Terrorism," NBER Working Papers 15465, National Bureau of Economic Research, Inc.
  16. Dave Donaldson, 2010. "Railroads of the Raj: Estimating the Impact of Transportation Infrastructure," NBER Working Papers 16487, National Bureau of Economic Research, Inc.
  17. Catherine rodríguez & fabio s�nchez, 2012. "Armed Conflict Exposure, Human Capital Investments, And Child Labor: Evidence From Colombia," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(2), pages 161-184, April.
  18. Miaari, Sami H. & Sauer, Robert M., 2006. "The Labor Market Costs of Conflict: Closures, Foreign Workers, and Palestinian Employment and Earnings," IZA Discussion Papers 2282, Institute for the Study of Labor (IZA).
  19. David A. Jaeger & M. Daniele Paserman, 2005. "The Cycle of Violence? An Empirical Analysis of Fatalities in the Palestinian-Israeli Conflict," Working Papers 22, Department of Economics, College of William and Mary.
  20. Ksoll, Christopher & Macchiavello, Rocco & Morjaria, Ameet, 2010. "The Effect of Ethnic Violence on an Export-Oriented Industry," CEPR Discussion Papers 8074, C.E.P.R. Discussion Papers.
  21. Rosa Sanchis-Guarner, 2012. "Driving Up Wages: The Effects of Road Construction in Great Britain," SERC Discussion Papers 0120, Spatial Economics Research Centre, LSE.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6457. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.