The Labor Market Impact of Mobility Restrictions : Evidence from the West Bank

Using data on Israeli closures inside the West Bank, this paper provides new evidence on the labor market effects of conflict-induced restrictions to mobility. To identify the effects, the analysis exploits the fact that the placement of physical b...

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Main Authors:	Cali, Massimiliano, Miaari, Sami H.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ACCESSIBILITY ACCESSIBILITY TO EMPLOYMENT ACCOUNTING ALTERNATIVE ROUTES BANK OF ISRAEL CAPITAL INVESTMENTS CHILD LABOR COMMUTERS CONGESTION CROSSING DEMAND CURVE DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DOMESTIC MARKET DRIVING ECONOMIC CONDITIONS ECONOMIC COSTS ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIES OF SCALE EMPLOYMENT EMPLOYMENT LEVELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT PROBABILITY EMPLOYMENT RATES EMPLOYMENT STATUS ESTIMATED PROBABILITIES FATALITIES FATALITY FINDING EMPLOYMENT FIRM LEVEL FIXED COSTS FOREIGN WORKERS GENERAL EQUILIBRIUM GROSS DOMESTIC PRODUCT HIGHWAY HIGHWAY CONSTRUCTION HIGHWAY SYSTEM HIGHWAYS HUMAN CAPITAL HUMAN RESOURCES INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECTS INFRASTRUCTURES INTERNATIONAL TRADE INTERSTATE HIGHWAY SYSTEM JOB SEPARATION JOBS LABOR ADJUSTMENT LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET CHARACTERISTICS LABOR MARKET IMPACT LABOR MARKET OUTCOME LABOR MARKET OUTCOMES LABOR MARKET VARIABLES LABOR MARKETS LABOR SUPPLY LABOUR LABOUR SUPPLY LOCAL LABOR MARKET LOCAL LABOR MARKET CONDITIONS LOCAL LABOR MARKETS LORRIES METROPOLITAN AREAS MOBILITY MOTIVATION OCCUPATION PEDESTRIAN PEDESTRIAN TRAFFIC PRELIMINARY EVIDENCE PRICE DIFFERENTIALS PRODUCTIVITY PROFITABILITY RAILROAD RAILROADS RAILWAY RAILWAY SYSTEM REAL INCOME ROAD IMPROVEMENTS ROAD NETWORK ROAD SYSTEM ROADS ROUTE ROUTES SALES SPREAD TOTAL WORKERS TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT MODE TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION INFRASTRUCTURE TRAVEL TIME TRUE UNEMPLOYED UNEMPLOYED WORKER UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED WORKERS VEHICLE VEHICLES WAGE ADJUSTMENT WAGE DIFFERENTIAL WAGES WORKER WORKERS WORKING HOURS
Online Access:	http://documents.worldbank.org/curated/en/2013/05/17743937/labor-market-impact-mobility-restrictions-evidence-west-bank http://hdl.handle.net/10986/15595

id	okr-10986-15595
recordtype	oai_dc
spelling	okr-10986-155952021-04-23T14:03:19Z The Labor Market Impact of Mobility Restrictions : Evidence from the West Bank Cali, Massimiliano Miaari, Sami H. ACCESSIBILITY ACCESSIBILITY TO EMPLOYMENT ACCOUNTING ALTERNATIVE ROUTES BANK OF ISRAEL CAPITAL INVESTMENTS CHILD LABOR COMMUTERS CONGESTION CROSSING DEMAND CURVE DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DOMESTIC MARKET DRIVING ECONOMIC CONDITIONS ECONOMIC COSTS ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIES OF SCALE EMPLOYMENT EMPLOYMENT LEVELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT PROBABILITY EMPLOYMENT RATES EMPLOYMENT STATUS ESTIMATED PROBABILITIES FATALITIES FATALITY FINDING EMPLOYMENT FIRM LEVEL FIXED COSTS FOREIGN WORKERS GENERAL EQUILIBRIUM GROSS DOMESTIC PRODUCT HIGHWAY HIGHWAY CONSTRUCTION HIGHWAY SYSTEM HIGHWAYS HUMAN CAPITAL HUMAN RESOURCES INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECTS INFRASTRUCTURES INTERNATIONAL TRADE INTERSTATE HIGHWAY SYSTEM JOB SEPARATION JOBS LABOR ADJUSTMENT LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET CHARACTERISTICS LABOR MARKET IMPACT LABOR MARKET OUTCOME LABOR MARKET OUTCOMES LABOR MARKET VARIABLES LABOR MARKETS LABOR SUPPLY LABOUR LABOUR SUPPLY LOCAL LABOR MARKET LOCAL LABOR MARKET CONDITIONS LOCAL LABOR MARKETS LORRIES METROPOLITAN AREAS MOBILITY MOTIVATION OCCUPATION PEDESTRIAN PEDESTRIAN TRAFFIC PRELIMINARY EVIDENCE PRICE DIFFERENTIALS PRODUCTIVITY PROFITABILITY RAILROAD RAILROADS RAILWAY RAILWAY SYSTEM REAL INCOME ROAD IMPROVEMENTS ROAD NETWORK ROAD SYSTEM ROADS ROUTE ROUTES SALES SPREAD TOTAL WORKERS TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT MODE TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION INFRASTRUCTURE TRAVEL TIME TRUE UNEMPLOYED UNEMPLOYED WORKER UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED WORKERS VEHICLE VEHICLES WAGE ADJUSTMENT WAGE DIFFERENTIAL WAGES WORKER WORKERS WORKING HOURS Using data on Israeli closures inside the West Bank, this paper provides new evidence on the labor market effects of conflict-induced restrictions to mobility. To identify the effects, the analysis exploits the fact that the placement of physical barriers by Israel was exogenous to local labor market conditions and uses a measure of conflict intensity to control for the likely spurious correlation between local unrest, labor market conditions, and the placement of barriers. The study finds that these barriers to mobility have a significant negative effect on employment, wages, and days worked per month. The barriers had a positive impact on the number of hours per working day. These effects are driven mainly by checkpoints while other barriers, such as roadblocks and earth mounds, have a much more limited impact. Only a tiny portion of the effects is due to direct restrictions on workers' mobility, suggesting that these restrictions affect the labor market mainly by depressing firms' production and labor demand. Despite being an underestimation of the actual effects, the overall costs of the barriers on the West Bank labor market are substantial: in 2007, for example, these costs amounted to 6 percent of gross domestic product. Most of these costs are due to lower wages, thus suggesting that the labor market has adjusted to the restrictions more through prices than quantities. 2013-09-04T18:35:31Z 2013-09-04T18:35:31Z 2013-05 http://documents.worldbank.org/curated/en/2013/05/17743937/labor-market-impact-mobility-restrictions-evidence-west-bank http://hdl.handle.net/10986/15595 English en_US Policy Research Working Paper;No. 6457 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Middle East and North Africa West Bank and Gaza
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCESSIBILITY ACCESSIBILITY TO EMPLOYMENT ACCOUNTING ALTERNATIVE ROUTES BANK OF ISRAEL CAPITAL INVESTMENTS CHILD LABOR COMMUTERS CONGESTION CROSSING DEMAND CURVE DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DOMESTIC MARKET DRIVING ECONOMIC CONDITIONS ECONOMIC COSTS ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIES OF SCALE EMPLOYMENT EMPLOYMENT LEVELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT PROBABILITY EMPLOYMENT RATES EMPLOYMENT STATUS ESTIMATED PROBABILITIES FATALITIES FATALITY FINDING EMPLOYMENT FIRM LEVEL FIXED COSTS FOREIGN WORKERS GENERAL EQUILIBRIUM GROSS DOMESTIC PRODUCT HIGHWAY HIGHWAY CONSTRUCTION HIGHWAY SYSTEM HIGHWAYS HUMAN CAPITAL HUMAN RESOURCES INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECTS INFRASTRUCTURES INTERNATIONAL TRADE INTERSTATE HIGHWAY SYSTEM JOB SEPARATION JOBS LABOR ADJUSTMENT LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET CHARACTERISTICS LABOR MARKET IMPACT LABOR MARKET OUTCOME LABOR MARKET OUTCOMES LABOR MARKET VARIABLES LABOR MARKETS LABOR SUPPLY LABOUR LABOUR SUPPLY LOCAL LABOR MARKET LOCAL LABOR MARKET CONDITIONS LOCAL LABOR MARKETS LORRIES METROPOLITAN AREAS MOBILITY MOTIVATION OCCUPATION PEDESTRIAN PEDESTRIAN TRAFFIC PRELIMINARY EVIDENCE PRICE DIFFERENTIALS PRODUCTIVITY PROFITABILITY RAILROAD RAILROADS RAILWAY RAILWAY SYSTEM REAL INCOME ROAD IMPROVEMENTS ROAD NETWORK ROAD SYSTEM ROADS ROUTE ROUTES SALES SPREAD TOTAL WORKERS TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT MODE TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION INFRASTRUCTURE TRAVEL TIME TRUE UNEMPLOYED UNEMPLOYED WORKER UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED WORKERS VEHICLE VEHICLES WAGE ADJUSTMENT WAGE DIFFERENTIAL WAGES WORKER WORKERS WORKING HOURS
spellingShingle	ACCESSIBILITY ACCESSIBILITY TO EMPLOYMENT ACCOUNTING ALTERNATIVE ROUTES BANK OF ISRAEL CAPITAL INVESTMENTS CHILD LABOR COMMUTERS CONGESTION CROSSING DEMAND CURVE DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DOMESTIC MARKET DRIVING ECONOMIC CONDITIONS ECONOMIC COSTS ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIES OF SCALE EMPLOYMENT EMPLOYMENT LEVELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT PROBABILITY EMPLOYMENT RATES EMPLOYMENT STATUS ESTIMATED PROBABILITIES FATALITIES FATALITY FINDING EMPLOYMENT FIRM LEVEL FIXED COSTS FOREIGN WORKERS GENERAL EQUILIBRIUM GROSS DOMESTIC PRODUCT HIGHWAY HIGHWAY CONSTRUCTION HIGHWAY SYSTEM HIGHWAYS HUMAN CAPITAL HUMAN RESOURCES INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECTS INFRASTRUCTURES INTERNATIONAL TRADE INTERSTATE HIGHWAY SYSTEM JOB SEPARATION JOBS LABOR ADJUSTMENT LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET CHARACTERISTICS LABOR MARKET IMPACT LABOR MARKET OUTCOME LABOR MARKET OUTCOMES LABOR MARKET VARIABLES LABOR MARKETS LABOR SUPPLY LABOUR LABOUR SUPPLY LOCAL LABOR MARKET LOCAL LABOR MARKET CONDITIONS LOCAL LABOR MARKETS LORRIES METROPOLITAN AREAS MOBILITY MOTIVATION OCCUPATION PEDESTRIAN PEDESTRIAN TRAFFIC PRELIMINARY EVIDENCE PRICE DIFFERENTIALS PRODUCTIVITY PROFITABILITY RAILROAD RAILROADS RAILWAY RAILWAY SYSTEM REAL INCOME ROAD IMPROVEMENTS ROAD NETWORK ROAD SYSTEM ROADS ROUTE ROUTES SALES SPREAD TOTAL WORKERS TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT MODE TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION INFRASTRUCTURE TRAVEL TIME TRUE UNEMPLOYED UNEMPLOYED WORKER UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED WORKERS VEHICLE VEHICLES WAGE ADJUSTMENT WAGE DIFFERENTIAL WAGES WORKER WORKERS WORKING HOURS Cali, Massimiliano Miaari, Sami H. The Labor Market Impact of Mobility Restrictions : Evidence from the West Bank
geographic_facet	Middle East and North Africa West Bank and Gaza
relation	Policy Research Working Paper;No. 6457
description	Using data on Israeli closures inside the West Bank, this paper provides new evidence on the labor market effects of conflict-induced restrictions to mobility. To identify the effects, the analysis exploits the fact that the placement of physical barriers by Israel was exogenous to local labor market conditions and uses a measure of conflict intensity to control for the likely spurious correlation between local unrest, labor market conditions, and the placement of barriers. The study finds that these barriers to mobility have a significant negative effect on employment, wages, and days worked per month. The barriers had a positive impact on the number of hours per working day. These effects are driven mainly by checkpoints while other barriers, such as roadblocks and earth mounds, have a much more limited impact. Only a tiny portion of the effects is due to direct restrictions on workers' mobility, suggesting that these restrictions affect the labor market mainly by depressing firms' production and labor demand. Despite being an underestimation of the actual effects, the overall costs of the barriers on the West Bank labor market are substantial: in 2007, for example, these costs amounted to 6 percent of gross domestic product. Most of these costs are due to lower wages, thus suggesting that the labor market has adjusted to the restrictions more through prices than quantities.
format	Publications & Research :: Policy Research Working Paper
author	Cali, Massimiliano Miaari, Sami H.
author_facet	Cali, Massimiliano Miaari, Sami H.
author_sort	Cali, Massimiliano
title	The Labor Market Impact of Mobility Restrictions : Evidence from the West Bank
title_short	The Labor Market Impact of Mobility Restrictions : Evidence from the West Bank
title_full	The Labor Market Impact of Mobility Restrictions : Evidence from the West Bank
title_fullStr	The Labor Market Impact of Mobility Restrictions : Evidence from the West Bank
title_full_unstemmed	The Labor Market Impact of Mobility Restrictions : Evidence from the West Bank
title_sort	labor market impact of mobility restrictions : evidence from the west bank
publisher	World Bank, Washington, DC
publishDate	2013
url	http://documents.worldbank.org/curated/en/2013/05/17743937/labor-market-impact-mobility-restrictions-evidence-west-bank http://hdl.handle.net/10986/15595
_version_	1764429527949246464

The Labor Market Impact of Mobility Restrictions : Evidence from the West Bank

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