The Effect of the Israeli-Palestinian Conflict on the Palestinian labor Market and Human Capital Accumulation

Abstract

This paper summarizes recent literature that discusses the economic costs of several conflict measures, e.g., “time and geographical variation in fatalities and other conflict incidents, days under curfews, checkpoints, movement restrictions, and Palestinian substitution labor by foreigner workers on the Palestinian labor market and human capital”. Earnings and unemployment are the main labor market indicators, while human capital was assessed by educational attainment. Also, this essay sheds light on the wage differential in the Palestinian labor market due to geographical and employment sector factors as a consequence of the ongoing conflict.