The labor market costs of conflict: closures, foreign workers, and Palestinian employment and earnings

Abstract

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The Effects of Labor Supply Shocks on Labor Market Outcomes: Evidence from the Israeli-Palestinian Conflict

“…The wage results are consistent with the e¤ects on the unemployment rates of high-skilled workers. Di¤erences in the e¤ects across skill groups also suggest that the estimates are not picking up demand related factors or direct e¤ects of the political instability which, as previous research has shown, have impacted all workers (Miaari and Sauer, 2006).…”

“…22 The identifying assumption is that the change in the number of workers reporting Israel as their work location from each city varies over time for reasons that are uncorrelated with the underlying or current city-speci…c economic conditions, but are only determined by Israeli security measures based, partially, on the level of political unrest. 23 This can be a concern if political unrest and local violent disruptions that varied quarterly across cities impacted wages directly. In this case, areas that were most a¤ected by Israeli sanctions 21 Provided that the population in each city is constant over the time period I analyze, or that the population in each city grows at the same rate, including city and year …xed e¤ects will capture the term ln[D jcqt + U jcqt + I jcqt ]: 22 The analysis in this paper excludes non-participants from the sample and from the labor supply measure.…”

“…This alternative measure of labor supply does not a¤ect my results in any signi…cant way. 23 There is substantial negative correlation between the number of workers employed in Israel and the number of fatalities. The correlation is around -0.42, and -0.30 for the low and high skilled, respectively.…”

Mental Health and Labour Supply – Evidence from Mexico's Ongoing Violent Conflicts

“…It has been shown for other countries that regional violent conicts are associated with the development of the regional economy and hence, job opportunities. Deininger (2003) provide an overview, and rare examples of studies on direct links between conicts and labour supply are Miaari and Sauer (2011) and Mansour (2010). While a direct relationship is also likely to be the case after the escalation of conict intensity in Mexico in 2008 (although no study exists so far), this is unlikely for the years 1998 to 2007 during which little time variation in intentional homicide rates existed and conict intensity was relatively low.…”

“…The extent to which the lack of national security harms Mexico's social and economic development, and consequences of wars and conicts on individuals in general, have received little attention in scientic research (Blattman and Miguel, 2010). Only a few studies explicitly focus on the eects of violent conict on labour market outcomes, such as Abadie and Gardeazabal (2003); Calderón and Ibáñez (2009) ;Menon and van der Meulen Rodgers (2011); Miaari and Sauer (2011) and Bozzoli et al (2010). For a better understanding of the monetary and non-monetary consequences of violent conict on civil society, in this study the impact of Mexico's drug-related conicts on mental health measured by symptoms of depression / anxiety (SDA) a main determinant of mental health is estimated.…”