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The economic response of rural areas to local supply shock: evidence from the Occupied West Bank
Middle East Development Journal ( IF 0.9 ) Pub Date : 2018-01-02 , DOI: 10.1080/17938120.2018.1446235
Belal Fallah 1
Affiliation  

ABSTRACT As the Second Intifada broke out at the end of 2000, Israel severely restricted entry for Palestinians to its labor market, forcing a great section of commuters to return to their local labor markets. This paper examines the economic effect of the return commuting on non-commuters in rural areas of the Occupied West Bank. Utilizing place-of-work, repeated cross-section data, the results show that returned commuting has negative repercussions. Specifically, wages decrease for workers with the same skill type (low skilled). The results also provide evidence that favors the crowd-out effect hypothesis. The estimated probability of unemployment increases for non-commuters with disproportionate effect for job seekers relative to those reportedly employed. Consistent with this result, increases in return commuting prolong unemployment duration for the low skilled. The outcome of this paper helps understand how rural labor markets may respond to labor supply shocks.

中文翻译:

农村对当地供应冲击的经济反应:被占领西岸的证据

摘要随着第二次起义于2000年底爆发,以色列严格限制巴勒斯坦人进入其劳动力市场,迫使很大一部分通勤者返回其当地劳动力市场。本文研究了返程通勤对被占领西岸农村地区非通勤者的经济影响。利用工作地点,重复的横截面数据,结果表明,往返通勤会产生负面影响。具体来说,具有相同技能类型(低技能)的工人的工资会下降。结果还提供了支持挤出效应假说的证据。据估计,非通勤者的失业可能性增加,而求职者相对于据报导的就业者而言,其影响不成比例。与这个结果一致,通勤收益的增加会增加低技能人士的失业时间。本文的结果有助于了解农村劳动力市场如何应对劳动力供给冲击。
更新日期:2018-01-02
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