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Title: Competition, substitution, or discretion: An analysis of Palestinian and foreign guest workers in the Israeli labor market
Authors: Aranki, Ted N. 
Daoud, Yousef 
Keywords: Labour market - Israel;Foreign workers - Israel;Working class - Palestine;Alien labor - Israel
Issue Date: 2010
Publisher: Journal of Population Economics
Abstract: This paper investigates the effects of foreign workers on lab market outcomes for Palestinian workers in the Israeli labor market. The paper utilizes a micro-dataset on the Palestinian labor force combined wi time-series data on foreign workers in Israel. The data covers the period 19 2003, a period in which Israel enforced a strict closure on labor (and goo movement, particularly in 2001 and 2002. The evidence suggests that foreign workers in Israel do not affect Palestinian employment; however, an increase in the number of foreign workers in Israel tends to reduce Israeli wages p to Palestinian workers from the Gaza Strip. The Israeli closure policy appe to be the main cause for the substantial reduction in long-run Palestinian employment levels in Israel, not the presence of foreign workers.
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