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Labor Demand And The Wage Gap In The West Bank And Gaza Strip

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  • EA Sayre

Abstract

The returns to schooling for Palestinian men in the West Bank and Gaza Strip declined sharply from 1981 to 1987 but recovered slightly from 1987 to 1991. This article examines the degree to which these returns were associated with the demand for Palestinian labor. Contrary to previous research, the current study finds that labor demand and not just the increased schooling of Palestinians determined the returns to schooling. Specifically, increased demand for unskilled Palestinian labor in Israel and decreased demand for Palestinian workers in other Arab states combined to explain one‐fifth to one‐quarter of the decline in the wage gap from 1981 to 1987.

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  • EA Sayre, 2001. "Labor Demand And The Wage Gap In The West Bank And Gaza Strip," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 213-224, April.
    • Handle: RePEc:bla:coecpo:v:19:y:2001:i:2:p:213-224
    DOI: 10.1111/j.1465-7287.2001.tb00062.x
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    References listed on IDEAS

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    1. Mikael Lindahl & Alan B. Krueger, 2001. "Education for Growth: Why and for Whom?," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1101-1136, December.
    2. J. David Richardson, 1995. "Income Inequality and Trade: How to Think, What to Conclude," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 33-55, Summer.
    3. Angrist, Joshua D, 1995. "The Economic Returns to Schooling in the West Bank and Gaza Strip," American Economic Review, American Economic Association, vol. 85(5), pages 1065-1087, December.
    4. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    5. Alan Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," Working Papers 808, Princeton University, Department of Economics, Industrial Relations Section..
    6. repec:fth:prinin:429 is not listed on IDEAS
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    Cited by:

    1. Sayre Edward A, 2009. "Labor Market Conditions, Political Events, and Palestinian Suicide Bombings," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 15(1), pages 1-26, May.
    2. Yousef Daoud & Belal Fallah, 2016. "The differential impact of employment in agriculture on wages for rural and non-rural Palestine," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.
    3. repec:uii:journl:v:5:y:2013:i:1:p:57-68 is not listed on IDEAS
    4. El-Attar, Mayssun, 2009. "Could Education Promote the Israeli-Palestinian Peace Process?," IZA Discussion Papers 4447, Institute of Labor Economics (IZA).
    5. Daoud Yousef & Fallah Belal, 2014. "Rural Wage Employment: Is There a Premium for Agriculture?," Working Papers 837, Economic Research Forum, revised Jun 2014.

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