This paper estimates the short run effect of creating more public jobs on private employment in the occupied West Bank. Unlike most cited research, the results provide evidence that favors crowd-in effect both at the aggregate employment level and across sectors. A main contribution of the paper is to empirically explore the underlying mechanisms that drive the results. They include positive public employment effect on local demand, lack of public wage premium, as well as no effect on private wages. It turns out that an increase in the local labor force participation is a driving factor for the latter channel. Interestingly, the increase in labor force participation exceeds that of public and private employment, leading to an increase in the number of job seekers.

本文估计了在被占领的西岸创造更多公共就业岗位对私人就业的短期影响。与大多数引用的研究不同，这些结果提供的证据表明，无论是在总体就业水平还是跨部门，都支持群体效应。该论文的一个主要贡献是从经验上探索驱动结果的潜在机制。它们包括公共就业对当地需求的积极影响，没有公共工资溢价，以及对私人工资没有影响。事实证明，当地劳动力参与的增加是后一种渠道的驱动因素。有趣的是，劳动力参与的增加超过了公共和私人就业的增加，导致求职人数增加。