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Wage Differential between Palestinian Non-refugees and Palestinian Refugees in the West Bank and Gaza

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  • Sameh Hallaq

Abstract

This paper measures the wage differential between Palestinian non-refugees and Palestinian refugees in the West Bank and Gaza over the years 1999-2012. First, the main individual and occupational differences between the two groups in the two regions are presented. Then, the wage differential is decomposed into two components: a "human capital effect, explained part" and a "coefficient effect, unexplained part." Second, findings suggest that though the wage gap has always existed and favored non-refugees in the West Bank, it has a more substantial impact among low-skilled workers and those in the private sector. Furthermore, most of this gap is attributed to the unexplained part of the wage decomposition model. In Gaza, the wage gap favored refugee workers. Most of this wage gap among unskilled workers is attributed to the endowment/human capital effect, while for skilled workers most of the wage gap is due to the unexplained part--the "coefficient effect"--after 2006.

Suggested Citation

  • Sameh Hallaq, 2019. "Wage Differential between Palestinian Non-refugees and Palestinian Refugees in the West Bank and Gaza," Economics Working Paper Archive wp_941, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_941
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    Cited by:

    1. Sameh Hallaq, 2020. "The Palestinian Labor Market over the Last Three Decades," Economics Working Paper Archive wp_976, Levy Economics Institute.

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    More about this item

    Keywords

    West Bank; Gaza Strip; Wage Differential; Refugees;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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