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LABOR DEMAND AND THE WAGE GAP IN THE WEST BANK AND GAZA STRIP
Author(s) -
Sayre EA
Publication year - 2001
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2001.tb00062.x
Subject(s) - gaza strip , west bank , economics , quarter (canadian coin) , wage , labour economics , palestine , labor demand , demographic economics , geography , ancient history , archaeology , history
The returns to schooling for Palestinian men in the West Bank and Gaza Strip declined sharply from 1981 to 1987 but recovered slightly from 1987 to 1991. This article examines the degree to which these returns were associated with the demand for Palestinian labor. Contrary to previous research, the current study finds that labor demand and not just the increased schooling of Palestinians determined the returns to schooling. Specifically, increased demand for unskilled Palestinian labor in Israel and decreased demand for Palestinian workers in other Arab states combined to explain one‐fifth to one‐quarter of the decline in the wage gap from 1981 to 1987.