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The labor market impact of mobility restrictions: Evidence from the West Bank

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  • Calì, Massimiliano
  • Miaari, Sami H.

Abstract

Using data on Israeli closures inside the West Bank, we provide novel evidence on the labor market effects of conflict-induced restrictions to mobility. To identify the effects we exploit the fact that the placement of physical barriers by Israel was exogenous to local labor market conditions. Check-points have a significant negative effect on employment, wages and days worked, while other barriers have small positive effects on employment and no discernible effects on other variables. We provide evidence that only a very small portion of these effects is due to direct restrictions on the mobility of workers. According to our estimates the labor market costs of the barriers amounted in 2007 to between 4% and 4.4% of GDP.

Suggested Citation

  • Calì, Massimiliano & Miaari, Sami H., 2018. "The labor market impact of mobility restrictions: Evidence from the West Bank," Labour Economics, Elsevier, vol. 51(C), pages 136-151.
  • Handle: RePEc:eee:labeco:v:51:y:2018:i:c:p:136-151
    DOI: 10.1016/j.labeco.2017.12.005
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    Citations

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    Cited by:

    1. Belal Fallah, 2017. "The Economic Response of Rural Areas to Local Supply Shock: Evidence From Palestine," Working Papers 1108, Economic Research Forum, revised 06 2017.
    2. Francesco Amodio & Michele Di Maio, "undated". "Making Do with What You Have: Conflict, Firm Performance and Input Misallocation in Palestine," Development Working Papers 379, Centro Studi Luca d'Agliano, University of Milano.
    3. Jürges, Hendrik & Stella, Luca & Hallaq, Sameh & Schwarz, Alexandra, 2017. "Cohort at Risk: Long-Term Consequences of Conflict for Child School Achievement," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168114, Verein für Socialpolitik / German Economic Association.
    4. Michele Di Maio & Roberto Nisticò, 2016. "The Effect of Parental Job Loss on Child School Dropout: Evidence from the Occupied Palestinian Territories," CSEF Working Papers 456, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 06 Feb 2018.
    5. Adnan, Wifag, 2015. "Who gets to cross the border? The impact of mobility restrictions on labor flows in the West Bank," Labour Economics, Elsevier, vol. 34(C), pages 86-99.

    More about this item

    Keywords

    Conflict; Palestine; Israel; Mobility; Closures; Labor market;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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