Competition, substitution, or discretion: an analysis of Palestinian and foreign guest workers in the Israeli labor market

Competition, substitution, or discretion: an analysis of Palestinian and foreign guest workers in the Israeli labor market

This paper investigates the effects of foreign workers on labor market outcomes for Palestinian workers in the Israeli labor market. The paper utilizes a micro-dataset on the Palestinian labor force combined with time-series data on foreign workers in Israel. The data covers the period 1999-2003, a...

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Bibliographic Details
Published in:Journal of population economics Vol. 23; no. 4; pp. 1275 - 1300
Main Authors: Aranki, Ted N., Daoud, Yousef
Format: Journal Article
Language:English
Published: Berlin/Heidelberg Springer 2010
Springer-Verlag
Springer Nature B.V
Subjects:
Analytical estimating
Bank failures
Bank markets
Bank workers
Banks
Business and economics
Demography
Economics
Economics and Finance
Ekonomi
Employment
Labor demand
Labor Economics
Labor force
Labor market
Labor markets
Land settlement
MIGRATION
Nationalekonomi
Original Paper
Palestinian people
Persian Gulf War
Population Economics
SAMHÄLLSVETENSKAP
Social Policy
SOCIAL SCIENCES
Wages
Workforce
J21
J31
Palestinian labor force
Foreign guest workers
J61
Labor market outcomes
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Description
Summary:This paper investigates the effects of foreign workers on labor market outcomes for Palestinian workers in the Israeli labor market. The paper utilizes a micro-dataset on the Palestinian labor force combined with time-series data on foreign workers in Israel. The data covers the period 1999-2003, a period in which Israel enforced a strict closure on labor (and goods) movement, particularly in 2001 and 2002. The evidence suggests that foreign workers in Israel do not affect Palestinian employment; however, an increase in the number of foreign workers in Israel tends to reduce Israeli wages paid to Palestinian workers from the Gaza Strip. The Israeli closure policy appears to be the main cause for the substantial reduction in long-run Palestinian employment levels in Israel, not the presence of foreign workers.
ISSN:0933-1433
1432-1475
1432-1475
DOI:10.1007/s00148-008-0231-6