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The differential impact of employment in agriculture on wages for rural and non-rural Palestine

Author

Listed:
  • Yousef Daoud

    (Doha Institute for Graduate Studies
    Birzeit University)

  • Belal Fallah

    (Palestine Polytechnic University)

Abstract

This paper investigates the differential impact of employment in agriculture on rural and non-rural wages using the quarterly labor force survey (LFS) collected by the Palestine Central Bureau of Statistics (PCBS). We estimate the wage equation for rural and non-rural workers controlling for structural, socioeconomic, and political factors. The results suggest that employment in agriculture lowers the average wage by a range from 26 to 34 % for the non-rural population and 30–37 % for rural population. Meanwhile, Israeli closures tend to raise the probability of selecting agriculture as a sector for employment. Among other findings, the results also show that returns to education are lower for rural workers than for non-rural workers. JEL Classification: R11, J30, J61, J01

Suggested Citation

  • Yousef Daoud & Belal Fallah, 2016. "The differential impact of employment in agriculture on wages for rural and non-rural Palestine," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.
    • Handle: RePEc:spr:izaldv:v:5:y:2016:i:1:d:10.1186_s40175-016-0063-9
    DOI: 10.1186/s40175-016-0063-9
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    Cited by:

    1. Livini Donath & Oliver Morrissey & Trudy Owens, 2021. "Pay period and the distributional effect of education on earnings: Evidence from recentered influence function," Discussion Papers 2021-02, University of Nottingham, CREDIT.

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    More about this item

    Keywords

    Labor supply; Labor demand; Commuting; Wage differential;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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