Abstract
In this paper, we provide a lower bound estimate of the labor market costs of the Israeli-Palestinian conflict. The conflict is quantified by the number of overseas foreign workers in the Israeli labor market and the frequency of temporary closures of the West Bank and Gaza Strip. IV estimates, which exploit a source of exogenous variation in the number of overseas foreign workers, yield significant negative effects of the conflict on Palestinian employment rates in Israel and monthly earnings. Our cost-of-conflict estimates are also relevant for the literature on the economics of immigration.
| Original language | English |
|---|---|
| Pages (from-to) | 129-148 |
| Number of pages | 20 |
| Journal | Review of Economics of the Household |
| Volume | 9 |
| Issue number | 1 |
| DOIs | |
| State | Published - Mar 2011 |
| Externally published | Yes |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 10 Reduced Inequalities
Keywords
- Closures
- Conflict
- Earnings
- Employment
- Foreign workers
- Immigration
- Instrumental variables
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