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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
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    References listed on IDEAS

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    1. 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.
    2. AfDB AfDB, . "AfDB Group Annual Report in Brief 2009," Annual Report, African Development Bank, number 65 edited by Koua Louis Kouakou.
    3. AfDB AfDB, . "AfDB Group Annual Report 2007," Annual Report, African Development Bank, number 63 edited by Koua Louis Kouakou.
    4. 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.
    5. AfDB AfDB, . "AfDB Group Annual Report 2009 (Portuguese)," Annual Report, African Development Bank, number 67 edited by Koua Louis Kouakou.
    6. 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.
    7. 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.
    8. AfDB AfDB, . "AfDB Group Annual Report 2009 (Arabic)," Annual Report, African Development Bank, number 68 edited by Koua Louis Kouakou.
    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.
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    Citations

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    Cited by:

    1. 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.
    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. 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.
    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 Central and Eastern Europe (IAMO).

    More about this item

    Keywords

    International migration; Immigrant workers; Labour economics; Computable general equilibrium models; Israel; Palestine;

    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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