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The effect of parental job loss on child school dropout: Evidence from the Occupied Palestinian Territories

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  • Di Maio, Michele
  • Nisticò, Roberto

Abstract

We study the effect of parental job loss on child school dropout in developing countries. We focus on Palestinian households living in the Occupied Palestinian Territories and having the household head employed in Israel during the Second Intifada (2000–2006). We exploit quarterly variation in conflict intensity across districts in the OPT to instrument for Palestinian workers’ job loss in Israel. Our 2SLS results show that parental job loss increases child school dropout probability by 9 percentage points. The effect varies with child and household characteristics. We provide evidence that the effect operates through the job loss-induced reduction in household income.

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  • Di Maio, Michele & Nisticò, Roberto, 2019. "The effect of parental job loss on child school dropout: Evidence from the Occupied Palestinian Territories," Journal of Development Economics, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:deveco:v:141:y:2019:i:c:s0304387818309702
    DOI: 10.1016/j.jdeveco.2019.102375
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    2. Safoura Moeeni, 2022. "The Intergenerational Effects of Economic Sanctions," The World Bank Economic Review, World Bank, vol. 36(2), pages 269-304.
    3. Michele Di Maio & Valerio Leone Sciabolazza, 2021. "Conflict exposure and health: Evidence from the Gaza Strip," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2287-2295, September.
    4. Sarah Cattan & Christine Farquharson & Sonya Krutikova & Andrew McKendrick & Almudena Sevilla, 2023. "Parental labour market instability and children's mental health during the pandemic," IFS Working Papers W23/21, Institute for Fiscal Studies.
    5. Hai‐Anh H. Dang & Trong‐Anh Trinh & Paolo Verme, 2023. "Do refugees with better mental health better integrate? Evidence from the Building a New Life in Australia longitudinal survey," Health Economics, John Wiley & Sons, Ltd., vol. 32(12), pages 2819-2835, December.
    6. Asali, Muhammad & Abu-Qarn, Aamer & Beenstock, Michael, 2024. "Violence and cooperation in geopolitical conflicts: Evidence from the Second Intifada," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 261-286.
    7. Sameh Hallaq, 2020. "The Palestinian Labor Market over the Last Three Decades," Economics Working Paper Archive wp_976, Levy Economics Institute.
    8. Amr Ragab & Ayhab F. Saad, 2023. "The effects of a negative economic shock on male marriage in the West Bank," Review of Economics of the Household, Springer, vol. 21(3), pages 789-814, September.
    9. Saad, Ayhab F. & Fallah, Belal, 2020. "How educational choices respond to large labor market shocks: Evidence from a natural experiment," Labour Economics, Elsevier, vol. 66(C).
    10. Valentina Rotondi & Michele Rocca, 2022. "Bombs and Babies: Exposure to Terrorism and Fertility Choices in Nigeria," Journal of African Economies, Centre for the Study of African Economies, vol. 31(5), pages 487-510.
    11. Sameh Hallaq & Ayman Khalifah, 2022. "School Performance and Child Labor: Evidence from West Bank Schools," Economics Working Paper Archive wp_1007, Levy Economics Institute.
    12. Reilly Barry & Sam Hannah, 2022. "The distributional impact of the Sierra Leone conflict on household welfare," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 13(1), pages 1-41, January.
    13. Di Maio, Michele & Leone Sciabolazza, Valerio, 2023. "Conflict exposure and labour market outcomes: Evidence from longitudinal data for the Gaza Strip," Labour Economics, Elsevier, vol. 85(C).

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    More about this item

    Keywords

    Job loss; School dropout; Conflict; Second Intifada; Occupied Palestinian Territories; Israel;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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