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Relaxing Israeli restrictions on Palestinian labour: Who benefits?

  • Flaig, Dorothee
  • Siddig, Khalid
  • Grethe, Harald
  • Luckmann, Jonas
  • McDonald, Scott

Palestinian workers have been employed in low-skilled jobs in Israel for decades. The second Intifada, from 2000, increased border restrictions severely and sharply reduced employment possibilities in Israel for Palestinians, increased unemployment and reduced income in the West Bank. Israeli employers responded by increasing the number of foreign workers, mostly from Asia. Growing unemployment among Israeli unskilled workers caused Israel to impose quotas on the employment of foreigners. This study evaluates the effects of reducing movement and access restrictions between Israel and the West Bank. The study uses a single country computable general equilibrium model, adapted to a Social Accounting Matrix of Israel for the year 2004, to simulate the effects of different Israeli labour policy regimes and to identify the inter sectoral, whole economy and distributional implications.

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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 31 (2013)
Issue (Month): C ()
Pages: 143-150

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Handle: RePEc:eee:ecmode:v:31:y:2013:i:c:p:143-150
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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  1. Siddig, Khalid H.A. & Flaig, Dorothee & Luckmann, Jonas & Grethe, Harald, 2011. "A 2004 Social Accounting Matrix for Israel: Documentation of an Economy-Wide Database with a Focus on Agriculture, the Labour Market, and Income Distribution," Working Papers 110156, Universitaet Hohenheim, Institute of Agricultural Policy and Agricultural Markets.
  2. 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.
  3. AfDB AfDB, . "AfDB Group Annual Report 2009 (Arabic)," Annual Report, African Development Bank, number 68 edited by Koua Louis Kouakou.
  4. 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.
  5. AfDB AfDB, . "AfDB Group Annual Report 2007," Annual Report, African Development Bank, number 63 edited by Koua Louis Kouakou.
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  7. AfDB AfDB, . "AfDB Group Annual Report 2008," Annual Report, African Development Bank, number 64 edited by Koua Louis Kouakou.
  8. Ted Aranki & Yousef Daoud, 2010. "Competition, substitution, or discretion: an analysis of Palestinian and foreign guest workers in the Israeli labor market," Journal of Population Economics, Springer, vol. 23(4), pages 1275-1300, September.
  9. AfDB AfDB, . "AfDB Group Annual Report in Brief 2009," Annual Report, African Development Bank, number 65 edited by Koua Louis Kouakou.
  10. Thomas J. Carter, 2005. "Undocumented Immigration and Host-Country Welfare: Competition Across Segmented Labor Markets," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 777-795.
  11. Chi-Chur Chao & Eden S.H. Yu, 2002. "Immigration and Welfare for the Host Economy with Imperfect Competition," Journal of Regional Science, Wiley Blackwell, vol. 42(2), pages 327-338.
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