The Labor Market Costs of Conflict: Closures, Foreign Workers, and Palestinian Employment and Earnings. / Miaari, Sami H.; Sauer, Robert M.

In: Review of Economics of the Household, Vol. 9, No. 1, 03.2011, p. 129-148.

Research output: Contribution to journalArticlepeer-review



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 languageEnglish
Pages (from-to)129-148
Number of pages20
JournalReview of Economics of the Household
Issue number1
Early online date27 Nov 2009
Publication statusPublished - Mar 2011
This open access research output is licenced under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

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