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The Impact of Employment in Israel on the Palestinian Labor Force

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  • Etkes Haggay

    () (Bank of Israel)

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 in a West Bank governorate, which coincided with an increase in the number of permits issued for residents of that governorate. 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.

Suggested Citation

  • Etkes Haggay, 2012. "The Impact of Employment in Israel on the Palestinian Labor Force," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(2), pages 1-36, August.
  • Handle: RePEc:bpj:pepspp:v:18:y:2012:i:2:n:3
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    References listed on IDEAS

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    Cited by:

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    2. Assaf Zimring, 2015. "Testing the Heckscher-Ohlin-Vanek Theory with a Natural Experiment," Working Papers 642, Research Seminar in International Economics, University of Michigan.
    3. Agbahey, Johanes & Siddig, Khalid & Grethe, Harald, 2020. "Implications of labor supply specifications in CGE models: A demonstration for employment of Palestinian labor in Israel and its impact on the West Bank economy," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 265-284.
    4. Agbahey, Johanes U. I. & Siddig, Khalid & Grethe, Harald, 2016. "A 2011 Social Accounting Matrix for the West Bank with detailed representation of households and labour accounts," Working Paper Series 245157, Humboldt University Berlin, Department of Agricultural Economics.
    5. Caruso Raul & Klor Esteban F., 2012. "Political Economy Studies on the Israeli-Palestinian Conflict: Introduction," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(2), pages 1-10, August.
    6. Johanes Agbahey & Khalid Siddig & Harald Grethe, 2016. "Consequences of conflict: the impact of the closure regime on the economy of the West Bank economy," EcoMod2016 9197, EcoMod.
    7. Johanes Agbahey & Khalid Siddig & Harald Grethe, 2017. "Labor exports from the West Bank to Israel: between regretting the past and hoping for a better future," EcoMod2017 10133, EcoMod.

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