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Labor exports from Palestine to Israel: a boon or bane for the West Bank economy?
IZA Journal of Labor Policy Pub Date : 2020-08-17 , DOI: 10.2478/izajolp-2020-0008
Johanes Agbahey 1 , Khalid Siddig 1, 2 , Harald Grethe 1 , Scott McDonald 1
Affiliation  

Abstract

This article analyzes the effects on the West Bank economy of temporary Palestinian employment in Israel, using a new database and a computable general equilibrium model. The results show that Palestinian employment in Israel increases household incomes but distorts the operation of the West Bank labor market and increases domestic wages. Employment in Israel increases the real exchange rate of the West Bank leading to “Dutch disease” effects that inhibit the development of the West Bank economy. A decrease in the number of Palestinian workers in Israel reduces household welfare, and constraints on the West Bank economy restrict domestic absorption of the extra labor. Hence, the Palestinian National Authority may seek more labor exports to Israel. This article contributes to the broader discussion on the effects of migration policies on labor-sending economies by demonstrating the nontrivial benefits from labor migrations, but that these benefits come with costs. This article explores policy options for offsetting those costs.



中文翻译:

从巴勒斯坦向以色列的劳务输出:对西岸经济是好事还是坏事?

摘要

本文使用一个新的数据库和可计算的一般均衡模型,分析了巴勒斯坦在以色列的临时就业对西岸经济的影响。结果表明,巴勒斯坦人在以色列的就业增加了家庭收入,但扭曲了西岸劳动力市场的运作,并增加了国内工资。以色列的就业增加了西岸的实际汇率,导致了“荷兰病”效应,抑制了西岸经济的发展。以色列的巴勒斯坦工人人数减少,减少了家庭福利,而对西岸经济的限制也限制了国内对额外劳动力的吸收。因此,巴勒斯坦民族权力机构可能会寻求更多向以色列的劳务输出。本文通过展示劳务移民带来的非平凡利益,为有关移民政策对劳务派遣经济的影响的更广泛讨论做出了贡献,但这些利益是有代价的。本文探讨了抵消这些费用的政策选择。

更新日期:2020-08-17
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