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Labor exports from Palestine to Israel: a boon or bane for the West Bank economy

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  • Agbahey, J.
  • Siddig, K.
  • Grethe, H.

Abstract

Palestinian employment in Israel has benefited for a long time both Palestinian and Israeli economies. However, this win-win situation is hampered by the tight security-related restrictions introduced by Israel in the 1990s. Assuming that in a final settlement of the conflict those restrictions will be reduced, this paper uses a CGE framework including a new and comprehensive database to assess the effects of restoring the Palestinian employment in Israel to its pre-intifada level. The results show a strong reduction in Palestinian unemployment, strong welfare improvements for households and substantial changes in the composition of the labor force in the domestic labor market. Acknowledgement :

Suggested Citation

  • Agbahey, J. & Siddig, K. & Grethe, H., 2018. "Labor exports from Palestine to Israel: a boon or bane for the West Bank economy," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277252, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277252
    DOI: 10.22004/ag.econ.277252
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    More about this item

    Keywords

    Labor and Human Capital;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E16 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Social Accounting Matrix
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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