THEORY AT WORK:
THE INTIFADA AND
PALESTINIAN WAGES ICHWAN RIZKY MURANDA |
2010512028
Palestinian
Commuters
in the 1980s
Approximately 110,000 Palestinians
from the occupied West Bank and
Gaza commuted to Israel for jobs.
The main occupations of the workers
are in construction and agriculture.
Disruption
s Caused Refers to Palestinian uprisings or revolts
against Israeli control and occupation.
by the
Intifada Disruption
• Increased security of work permits
Israel s Caused
• Enforced ban on overnight stays in
• Strikes and curfews limiting mobility
by the
Impact on Commuting
Patterns
The Intifada and the subsequent responses from Israeli authorities led to a significant
disruption in the commuting patterns of Palestinians working in Israel.
>30 3-4
% 22
17
0.5
<2
%
Daily Absenteeism Avg. Commute Time
Rate (%) Workdays/Month (Hour)
Reduced
Supply of The Intifada greatly reduced the supply of
Palestinian Palestinian workers to Israel.
Commuter
s Wage The supply and demand
framework suggests that the
uprising should increase the wage
S1 S0 balance of Palestinian workers
W1
W0 A cut of about 50 percent in the
labor supply of commuted
D Palestinian workers increases their
real wages by about 50 percent,
which implies that the elasticity of
demand for commuted Palestinian
workers is about -1.
L1 L0 Labor
QN
A