The labor market costs of conflict: Closures, foreign workers, and Palestinian employment and earnings

Sami H. Miaari; Robert M. Sauer

doi:10.1007/s11150-009-9081-6

The labor market costs of conflict: Closures, foreign workers, and Palestinian employment and earnings

Research output: Contribution to journal › Article › peer-review

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	https://doi.org/10.1007/s11150-009-9081-6
State	Published - Mar 2011
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 10 Reduced Inequalities

Keywords

Closures
Conflict
Earnings
Employment
Foreign workers
Immigration
Instrumental variables

All Science Journal Classification (ASJC) codes

Social Sciences (miscellaneous)
Economics and Econometrics

Access to Document

10.1007/s11150-009-9081-6

Cite this

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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.",

keywords = "Closures, Conflict, Earnings, Employment, Foreign workers, Immigration, Instrumental variables",

author = "Miaari, \{Sami H.\} and Sauer, \{Robert M.\}",

note = "Funding Information: Acknowledgments Robert Sauer gratefully acknowledges the support of the Armand Hammer Fund for Economic Cooperation in the Middle East and the British Academy (grant number SG-43646). We also thank Joshua Angrist, David Genesove, Rachel Friedberg and Corinne Sauer for helpful comments.",

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AB - 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.

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KW - Conflict

KW - Earnings

KW - Employment

KW - Foreign workers

KW - Immigration

KW - Instrumental variables

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The labor market costs of conflict: Closures, foreign workers, and Palestinian employment and earnings

Abstract

UN SDGs

Keywords

All Science Journal Classification (ASJC) codes

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