 Economy-wide effects of cross-border labor mobility: The case of Palestinian employment in IsraelJohanes Agbahey, Khalid Siddig and Harald Grethe Journal of Policy Modeling, 2021, vol. 43, issue 5, 964-981 Abstract: This paper investigates the economy-wide effects of cross-border movements of Palestinian labor for employment in Israel. The integration of Palestinian and Israeli labor markets is unique, as it differs from international labor migration and associated remittances described in the literature. Especially, it departs from the cultural and social dimensions associated with international migration because there is no shift in residence. We find based on an economy-wide model calibrated to a newly developed database of the West Bank economy that increasing Palestinian labor demand in Israel negatively affects the West Bank economy by bidding up domestic wages, reallocating labor away from tradable activities and reducing competitiveness of the Palestinian export sector. However, increasing labor income from Israel has positive welfare effects for Palestinian households. Considering these results, the paper identifies policy options for the Palestinian National Authority. Keywords: Labor policy; Applied general equilibrium model; Production boundary; Welfare analysis; Palestine (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:43:y:2021:i:5:p:964-981 DOI: 10.1016/j.jpolmod.2021.03.008 Access Statistics for this article Journal of Policy Modeling is currently edited by A. M. Costa More articles in Journal of Policy Modeling from Elsevier |
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