Rural Wage Employment: Is There a Premium for Agriculture?

Daoud Yousef () and Fallah Belal
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Daoud Yousef: Department of Economics, Birzeit University

No 837, Working Papers from Economic Research Forum

Abstract: This paper investigates the determinants of 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. Results show that employment in agriculture reduces wages for both rural and non-rural workers. The work in Israel (premium) is shown to raise average wages by 60-70% for non-rural workers and 40-50% for rural workers. Despite this finding, the paper recommends reducing dependence on employment in Israel as a long-term solution to unemployment and to improve higher education for both rural and non-rural workers.

Pages: 20
Date: 2014-06, Revised 2014-06
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