The Effects of Personal Characteristics on Wage Variation Between Palestinian Workers

Discussion Committee: 
Omar Abdel - Razek
Kalthoum Salami Abdel – Rahman Nasir
This study analyzes one of Palestinian labor market subjects, it’s wages, and the effect of special characteristics at the differentials of wages. The study takes by studying and analyzing the data of Central Bureau Of Statistics, by taking a cross sectional data about the third quarter of the year 2000, this is because of this quarter was the most stable and active one. Using the methodology of descriptive and econometrics to see if the wages at Palestine follow the Mincer earnings function or not, then analyze another variables and their effect on wages such as sex, marital status, location and place of work. The following was the main conclusions: 1- The wages at Palestine labor market follow the Mincer earnings function, this mean that the years of study have appositive effect, and the years of experience have appositive decreasing effect. 2- The average rate of return to education was 6.7% 3- Every additional year of work rise the wages by the rate of 3.4% at decreasing rate. 4- Sex effect at the study and experience effect at wages for males, every additional year of study rise the wage for males by 0,98 point, and every additional year of experience rise the wage of males by 0,82 point. 5- Marital status has no effect at wages except one case, it is the effect of experience for singles it was lower than divorced by nearly 0.76. 6- The location ( Place of resident ) has no effect on the years of study and on the years of experience except the effect of study years at city it was higher than camp by 0.2 percent point, which is very small effect . 7- The place of work effects on both years of study and years of experience. The return of every additional year of study is higher in Israel by 4 percent points compared with West Bank and 5.5 percent points compared with Gaza Strip. While for every additional year of work the rate is higher in Israel by 0.7 percent point compared with West Bank, and 1.5 percent point compared with Gaza Strip. 8- The mean of the males wages is higher than females at West Bank and Israel, and closer at Gaza Strip. 9- The Mean of wages is higher for married people. 10- The mean of wages is higher for workers at Israel, then West Bank, then Gaza Strip. 11- The means of wages increase by the level of education after secondary school for males and was closer at levels lower than secondary. For females it increases by the level of study. 12- The means of wages increase by the level of experience till the 31-35 years then it decrease. 13- The participation rate for females are very low, and their work at governmental vacations mostly. 14- The effect of level of study was positive, the high diploma has the highest effect, then PhD, then BA/BSC. After studying and analyzing this study recommends the following: 1- Improve the educational system to serve the economic objectives. 2- Improve and develop the rural areas to make it complementary to the cities so as to avoid the distraction by the Israeli forces. 3- Retraining the workers and give them new skills to help them to have a higher wages, and this will protect them and encourage them to stay and work at the Palestinian land. 4- Increase the participation rate by encouraging the work of women and help them to work in other economic areas.
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