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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.

Suggested Citation

  • Flaig, Dorothee & Siddig, Khalid & Grethe, Harald & Luckmann, Jonas & McDonald, Scott, 2013. "Relaxing Israeli restrictions on Palestinian labour: Who benefits?," Economic Modelling, Elsevier, vol. 31(C), pages 143-150.
  • Handle: RePEc:eee:ecmode:v:31:y:2013:i:c:p:143-150
    DOI: 10.1016/j.econmod.2012.11.052

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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Assaf Zimring, 2015. "Testing the Heckscher-Ohlin-Vanek Theory with a Natural Experiment," Upjohn Working Papers and Journal Articles 15-243, W.E. Upjohn Institute for Employment Research.
    3. 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.
    4. Agbahey, Johanes & Siddig, Khalid & Grethe, Harald, 2016. "Access to Israeli Labor Markets: Effects on the West Bank Economy," 2016 IAMO Forum, June 22-24, 2016, Halle (Saale), Germany 243992, Institute of Agricultural Development in Transition Economies (IAMO).
    5. Wolfgang Britz & Dominique van der Mensbrugghe, 2018. "CGEBox: A Flexible, Modular and Extendable Framework for CGE Analysis in GAMS," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 3(2), pages 106-177, December.
    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. Assaf Zimring, 2015. "Testing the Heckscher-Ohlin-Vanek Theory with a Natural Experiment," Working Papers 642, Research Seminar in International Economics, University of Michigan.
    8. Assaf Zimring, 2019. "Testing the Heckscher–Ohlin–Vanek theory with a natural experiment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(1), pages 58-92, February.

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    More about this item


    International migration; Immigrant workers; Labour economics; Computable general equilibrium models; Israel; Palestine;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J00 - Labor and Demographic Economics - - General - - - General


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