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

Ted Nabil Aranki
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Ted Nabil Aranki: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Department of Business, Economics, Statistics and Informatics, SE - 701 82 ÖREBRO, Sweden, http://www.oru.se

No 2004:4, Working Papers from Örebro University, School of Business

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.

Keywords: Labour market; Palestinian labour force; Israel; closure policy; wage differentials; days worked; employment (search for similar items in EconPapers)
JEL-codes: J21 J61 O24 O53 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2004-09-29
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:oruesi:2004_004

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