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The Effect of Israeli Closure Policy on Wage Earnings in the West Bank and Gaza Strip

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Abstract

This paper analyzes the effects of the Israeli closure policy on the Palestinian wage earnings. The study decomposes the effect on the average daily wages, days worked, and employment. It also illuminates the distributional impacts on different groups in the economy with respect to potential heterogeneous effects on daily wages and days worked. Closure has a negative and significant effect on the wages, workdays, and employment outcome in the West Bank and Gaza Strip. The effect differs between the two regions. The external closure appears to have been more detrimental for residents in the Gaza Strip relative to West Bankers. Furthermore, the Israeli demand for Gazan workers appears to have diminished, indicating an Israeli policy of political and economic separation of the Gaza Strip.

Suggested Citation

  • Nabil Aranki, Ted, 2004. "The Effect of Israeli Closure Policy on Wage Earnings in the West Bank and Gaza Strip," Working Papers 2004:4, Örebro University, School of Business.
  • Handle: RePEc:hhs:oruesi:2004_004
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    Cited by:

    1. 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.
    2. Di Maio, Michele & Nandi, Tushar K., 2013. "The effect of the Israeli–Palestinian conflict on child labor and school attendance in the West Bank," Journal of Development Economics, Elsevier, vol. 100(1), pages 107-116.

    More about this item

    Keywords

    Labour market; Palestinian labour force; Israel; closure policy; wage differentials; days worked; employment;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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    1. Palestinian freedom of movement in Wikipedia English ne '')

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