Scandinavian Working Papers in Economics
Working Papers,
Örebro University, School of Business
No 2004:4: The Effect of Israeli Closure Policy on Wage Earnings in the West Bank and Gaza Strip
Ted Nabil Aranki
Additional contact information
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
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
31 pages, September 29, 2004
Price: 120
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