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

Author Info

Listed author(s):
  • Massimiliano Calì

    ()

    (World Bank)

  • Sami H. Miaari

    ()

    (World Bank)

Abstract

Using data on Israeli closure in the Palestinian West Bank, we provide new evidence on the labour market effects of conflict-induced restrictions to mobility. We exploit the fact that the placement of physical barriers by Israel was exogenous to local labour market conditions and find a causal negative effect of these barriers on employment, wages and days worked per month. On the other hand the barriers had a positive impact on the number of hours per working day. These effects are driven mainly by checkpoints and only a tiny portion of the effects is due to direct restrictions on workers’ mobility. Despite being an under-estimation of the actual effects, the overall costs of the barriers on the West Bank labour market are far from being negligible: in 2007 for example these costs amounted to 6% of GDP.

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Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 130.

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Length: 41 pages
Date of creation: Nov 2012
Handle: RePEc:hic:wpaper:130
Contact details of provider: Web page: http://www.hicn.org

Keywords: Conflict; Palestine; Israel; mobility; closures; Intifada;

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Find related papers by 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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Cited by:

  1. 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.
  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. Michele Di Maio & Roberto Nisticò, 2016. "Effect of Parental Job Loss on Child School Dropout: Evidence from the Palestinian Occupied Territories," CSEF Working Papers 456, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.

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