IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v31y2013icp143-150.html
   My bibliography  Save this article

Relaxing Israeli restrictions on Palestinian labour: Who benefits?

Author

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

Abstract

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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999312004087
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. AfDB AfDB, . "AfDB Group Annual Report in Brief 2009," Annual Report, African Development Bank, number 65 edited by Koua Louis Kouakou.
    2. AfDB AfDB, . "AfDB Group Annual Report 2009 (Portuguese)," Annual Report, African Development Bank, number 67 edited by Koua Louis Kouakou.
    3. 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.
    4. 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, November.
    5. AfDB AfDB, . "AfDB Group Annual Report 2009 (Arabic)," Annual Report, African Development Bank, number 68 edited by Koua Louis Kouakou.
    6. Angrist, Joshua D, 1996. "Short-Run Demand for Palestinian Labor," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 425-453, July.
    7. AfDB AfDB, . "AfDB Group Annual Report 2007," Annual Report, African Development Bank, number 63 edited by Koua Louis Kouakou.
    8. 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, May.
    9. 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;European Society for Population Economics, vol. 23(4), pages 1275-1300, September.
    10. 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.
    11. AfDB AfDB, . "AfDB Group Annual Report 2008," Annual Report, African Development Bank, number 64 edited by Koua Louis Kouakou.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tabak, Benjamin M. & de Castro Miranda, Rodrigo & da Silva Medeiros, Maurício, 2016. "Contagion in CDS, banking and equity markets," Economic Systems, Elsevier, vol. 40(1), pages 120-134.
    2. Dehghani, Hamed & Vahidi, Behrooz & Hosseinian, Seyed Hossein, 2017. "Wind farms participation in electricity markets considering uncertainties," Renewable Energy, Elsevier, vol. 101(C), pages 907-918.
    3. Meslier, Céline & Tacneng, Ruth & Tarazi, Amine, 2014. "Is bank income diversification beneficial? Evidence from an emerging economy," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 31(C), pages 97-126.
    4. Lofgren, Hans & Cicowiez, Martin & Diaz-Bonilla, Carolina, 2013. "MAMS – A Computable General Equilibrium Model for Developing Country Strategy Analysis," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 159-276, Elsevier.
    5. Soto, Victoria Eugenia & Farfan, Maria Isabel & Lorant, Vincent, 2012. "Fiscal decentralisation and infant mortality rate: The Colombian case," Social Science & Medicine, Elsevier, vol. 74(9), pages 1426-1434.
    6. Pellegrini, Laura A. & Soave, Giorgio & Gamba, Simone & Langè, Stefano, 2011. "Economic analysis of a combined energy–methanol production plant," Applied Energy, Elsevier, vol. 88(12), pages 4891-4897.
    7. Garcia, Humberto E. & Mohanty, Amit & Lin, Wen-Chiao & Cherry, Robert S., 2013. "Dynamic analysis of hybrid energy systems under flexible operation and variable renewable generation – Part II: Dynamic cost analysis," Energy, Elsevier, vol. 52(C), pages 17-26.
    8. Monios, Jason, 2011. "The role of inland terminal development in the hinterland access strategies of Spanish ports," Research in Transportation Economics, Elsevier, vol. 33(1), pages 59-66.
    9. Obeng, K. & Sakano, R., 2012. "Airline fare and seat management strategies with demand dependency," Journal of Air Transport Management, Elsevier, vol. 24(C), pages 42-48.
    10. Muhongayire, Wivine, 2012. "An Economic Assessment of the Factors Influencing Smallholder Farmers' Access to Formal Credit: A Case Study of Rwamagana District, Rwanda," Research Theses 198522, Collaborative Masters Program in Agricultural and Applied Economics.
    11. Fullerton, Thomas M. & Juarez, David A. & Walke, Adam G., 2012. "Residential electricity consumption in Seattle," Energy Economics, Elsevier, vol. 34(5), pages 1693-1699.
    12. Veronesi, F. & Grassi, S. & Raubal, M., 2016. "Statistical learning approach for wind resource assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 836-850.
    13. Duan, Jin-Chuan & Van Laere, Elisabeth, 2012. "A public good approach to credit ratings – From concept to reality," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3239-3247.
    14. Kuo, Chung-Wei & Jou, Rong-Chang & Lin, Shu-Wun, 2012. "Turnover intention of air traffic controllers in Taiwan: A note," Journal of Air Transport Management, Elsevier, vol. 25(C), pages 50-52.
    15. Carlos Vidal-Meliá & Mar, 2013. "Compiling the actuarial balance for pay-as-you-go pension systems. Is it better to use the hidden asset or the contribution asset?," Applied Economics, Taylor & Francis Journals, vol. 45(10), pages 1303-1320, April.
    16. Etkes, Haggay, 2011. "The impact of employment in Israel on the Palestinian labor force (2005–08)," MPRA Paper 34681, University Library of Munich, Germany.
    17. O'Connell, John F. & Warnock-Smith, David, 2013. "An investigation into traveler preferences and acceptance levels of airline ancillary revenues," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 12-21.
    18. Predrag Rajsic & Glenn Fox, 2017. "Quota prices as indicators of comparative advantage in supply-managed industries," Agricultural Economics, International Association of Agricultural Economists, vol. 48(2), pages 165-174, March.
    19. E. Calvert & Brian Nolan & Tony Fahey & D. Healy & A. Mulcahy & B. Maître & Michelle Norris & I. O’Donnell & Nessa Winston & Christopher Whelan, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Ireland," GINI Country Reports ireland, AIAS, Amsterdam Institute for Advanced Labour Studies.
    20. Jairath, M.S. & Purohit, Purnima, 2013. "Food Safety Regulatory Compliance in India: A Challenge to Enhance Agri-businesses," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(3), pages 1-18.

    More about this item

    Keywords

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:31:y:2013:i:c:p:143-150. 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: (Haili He). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.