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The Palestinian Economy. Theoretical and Practical Challenges

The Palestinian Economy. Theoretical and Practical Challenges

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Labour Force Instability <strong>and</strong> Employment Hardship in<br />

the <strong>Palestinian</strong> Territory<br />

Basim Makhool <br />

Abstract: This paper analyses the determinants of labour force instability <strong>and</strong><br />

employment hardships using individual data drawn from the Labour Survey<br />

of 2003. <strong>The</strong> principal objective is to determine the factors affecting the<br />

status of the participants in the labour force. More specifically, socioeconomic<br />

characteristics of the individuals play a role in the hardships that<br />

they might face in the labour market. <strong>The</strong> statistical analysis shows<br />

significant differences in the labour force status that can be accounted for by<br />

differences in observed supply <strong>and</strong> dem<strong>and</strong> side’s characteristics. It was<br />

found that there are penalties of being a female, young, unmarried, <strong>and</strong> less<br />

educated, or reside in economically disadvantaged areas.<br />

JEL classification: J21, J64<br />

Keywords: Employment hardship, multinomial logistic functions,<br />

labours force.<br />

An-Najah National University, Nablus Palestine.<br />

<strong>The</strong> author would like to thank Sara Al-Haj for her great assistance in the data analysis.

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