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<title>FAFO Report 166</title>

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<b>Chapter 2</b><br>
<font size=+2>Labour-force participation, under-utilization of labour and employment patterns<p></font>
<p>

<b>Introduction</b><BR>

This chapter focuses on the employment situation of Palestinians living
in Gaza and the West Bank refugee camps after the March 1993 Israeli border
closure. It is our hypothesis that there has been a dramatic reduction in
employment since the closure. Thus we seek to develop indicators which can
measure this reduction, and help us to understand how it has manifested
itself in various socio-economic groups.
<p>

The chapter is divided into four parts. The first part will discuss various
aspects of labour-force participation  crude labour-force participation
rates, determinants of labour-force participation and the composition of
the labour force.
<p>

The second part will document the effects of the border closure on the employment
situation for various socio-economic groups, with a focus on the under-utilization
of labour.
<p>

The third part deals with changes in individuals' employment situation and
workplace from 1992 to 1993. We will also discuss the situation of employed
persons, their workplace, type of work and the economic sectors in which
they are found. A special section concerning individual involvement in household
income-generating activities, has also been included.
<p>

The concluding part of the chapter will discuss scenarios for future labour
supply in Gaza on the basis of results from the present data set. We also
present alternative projections from the Work Force and Labour Modules of
the World Bank's macro-economic model for the Occupied Territories.
<p>

In family-based Palestinian society, decisions on income-generating
activities are usually seen as household rather than individual
matters. A person's labour activities may thus be viewed as a result
of <i>household</i> optimization strategies, rather than individual
strategies unconstrained by the household.  Why then, have we chosen
to focus on the labour activities of <i>individuals</i>?  There are
two reasons for this: 1) it is the individual who is actually
employed, and 2) the household may be treated as a set of contextual
variables.  <p>

The economic importance of labour for the household, and its role in household
coping strategies, are left for the subsequent chapter. Each adult individual
in the sample will consequently be treated as a separate case, even though
the labour activities of individual household members may be expected to
be highly inter-related.
<p>

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<a href="_._.html"><img src="../../../../../../../sys/almashriq-bottom-line.gif"alt = "----------------" border= 0></a><p><pre>
<a href="../../../../../../../base/mailpage.html">al@mashriq</a>                       961216</pre>
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