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The Impact of Employment in Israel on the Palestinian Labor Force

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Listed author(s):
  • 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.

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Article provided by De Gruyter in its journal Peace Economics, Peace Science, and Public Policy.

Volume (Year): 18 (2012)
Issue (Month): 2 (August)
Pages: 1-36

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Handle: RePEc:bpj:pepspp:v:18:y:2012:i:2:n:3
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  1. Trostel, Philip & Walker, Ian & Woolley, Paul, 2002. "Estimates of the economic return to schooling for 28 countries," Labour Economics, Elsevier, vol. 9(1), pages 1-16, February.
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  12. 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 1065-1087, December.
  13. 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.
  14. 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, vol. 3(1), pages 38-60, April.
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Cited by:

  1. 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 Agricultural Economics.
  2. 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.
  3. Assaf Zimring, 2015. "Testing the Heckscher-Ohlin-Vanek Theory with a Natural Experiment," Working Papers 642, Research Seminar in International Economics, University of Michigan.
  4. 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.

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