
Figure 1
Evolution of Palestinian real GNI per capita (in constant 2015 US$) and the number of closure days, 1996–2016.
Source: B’Tselem, 2017; PCBS, 2020; UNCTAD, 2009.

Figure 2
Evolution of the share of Palestinians employed in Israel in Palestinian total employment and the unemployment rate in the Palestinian territories, 1996–2016.
Source: PCBS, 2017, 2000.
Table 1
Number of Palestinian workers in Israel in the base (physical units) and in the scenarios (% change as compared to the base)
| Core scenarios | Sensitivity analyses | ||||||
|---|---|---|---|---|---|---|---|
| Base | PreInti | AllEleg | AllUnsk | MoreSk | Plus5% | LessMob | |
| (unit = 8 hours) | (%) | (%) | (%) | (%) | (%) | (%) | |
| Low-skilled ineligible males | 17,364 | +35.7% | − | +39.4% | +26.4% | +35.7% | −35.7% |
| Low-skilled weakly eligible males | 19,065 | +35.7% | +49.7% | +39.4% | +26.4% | +35.7% | −35.7% |
| Low-skilled highly eligible males | 29,128 | +35.7% | +49.7% | +39.4% | +26.4% | +35.7% | −35.7% |
| Low-skilled females | 1,162 | +35.7% | +35.7% | +39.4% | +26.4% | +35.7% | −35.7% |
| High-skilled ineligible males | 3,123 | +35.7% | − | − | +124.5% | +35.7% | −35.7% |
| High-skilled weakly eligible males | 1,254 | +35.7% | +49.7% | − | +124.5% | +35.7% | −35.7% |
| High-skilled highly eligible males | 2,559 | +35.7% | +49.7% | − | +124.5% | +35.7% | −35.7% |
| High-skilled females | 32 | +35.7% | +35.7% | − | +124.5% | +35.7% | −35.7% |
| Total Palestinian workers in Israel | 73,687 | +35.7% | +35.7% | +35.7% | +35.7% | +35.7% | −35.7% |
| Total Palestinian labor force | 717,855 | − | − | − | − | +5.0% | − |

Figure 3
Number of unemployed (thousands, absolute and percentage changes) in the Base and the PreInti scenarios.
Table 2
Changes in employment status (worker and percentage) among labor categories
| Moving out of unemployment to employment in Israel | Moving out of unemployment to employment in the domestic market | Total moving out of unemployment | |
|---|---|---|---|
| Aggregate labor | 25,778 (56%) | 20,009 (44%) | 45,787 (100%) |
| Gender perspective | |||
| Male population | 25,352 (63%) | 15,038 (37%) | 40,390 (100%) |
| Female population | 426 (8%) | 4,971 (92%) | 5,397 (100%) |
| Skill perspective | |||
| Low-skilled | 23,452 (69%) | 10,415 (31%) | 33,866 (100%) |
| High skilled | 2,327 (20%) | 9,594 (80%) | 11,921 (100%) |

Figure 4
Change in household consumption and in domestic output (in%).

Figure 5
Welfare effects (Equivalent Variation as a share of Base household expenditure).
Table 3
Changes in macroeconomic, household and labor force indicators compared to the Base under the sensitivity analyses and the scenario PreInti
| Indicators | Core Scenario | Sensitivity analyses | |||||
|---|---|---|---|---|---|---|---|
| PreInti | AllEleg | AllUnk | MoreSk | Plus5% | LessMob | ||
| Macroeconomic indicators | Change in real GDP | +3.63% | +3.51% | +3.58% | +3.64% | +3.91% | −3.98% |
| Change in domestic output | +2.85% | +2.80% | +2.81% | +2.90% | +3.02% | −2.92% | |
| Change in import demand | +5.76% | +5.83% | +5.68% | +5.94% | +5.84% | −5.62% | |
| Change in export | −5.07% | −5.37% | −5.05% | −5.21% | −4.81% | +5.36% | |
| Household indicators | Change in household consumption | +6.53% | +6.81% | +6.43% | +6.82% | +6.32% | −6.26% |
| Change in household income | +9.76% | +9.29% | +9.62% | +10.20% | +9.44% | −9 23% | |
| Change in household welfare | +5.45% | +5.68% | +5.37% | +5.72% | +5.27% | −5.35% | |
| Labor force indicators | Change in the number of unemployed | −36.96% | −37.08% | −36.79% | −37.44% | −30.08% | +38.09% |
| Change in the number of employed in the domestic West Bank market | +3.76% | +3.78% | +3.72% | +3.87% | +4.26% | −4.03% | |

Annex 2
Production module nesting.
Source: The author.

Annex 3
Composition of GDP in 2011 in the West Bank.
Source: Social accounting matrix used for this study
Annex 4
List of accounts in the social accounting matrix
| No | Commodity (c) | No | Commodity (c) – contd. |
|---|---|---|---|
| 1 | Olives | 25 | Cars and lorries |
| 2 | Cereals, other crops | 26 | Machinery, and equipment |
| 3 | Fruits, nuts and flowers | 27 | Furniture |
| 4 | Vegetables, horticultural specialties | 28 | Other manufacturing |
| 5 | Animals | 29 | Electricity, gas and water |
| 6 | Milk | 30 | Construction |
| 7 | Forestry products | 31 | Maintenance and repair of motor vehicles |
| 8 | Fishery products | 32 | Repair of personal and household goods |
| 9 | Stone, sand, clay and other minerals | 33 | Other retail sale |
| 10 | Meat, meat products | 34 | Other wholesale |
| 11 | Fish, fish products | 35 | Hotels and restaurants |
| 12 | Processed fruits, vegetables | 36 | Freight transport by road |
| 13 | Olive oil | 37 | Passenger land transport |
| 14 | Oils, fats | 38 | Other transport, storage, travel agencies |
| 15 | Grain mills, starches | 39 | National post activities |
| 16 | Bakery products | 40 | Remaining communication |
| 17 | Other food | 41 | Finance, insurance and auxiliary services |
| 18 | Beverages | 42 | Real estate, and renting activities |
| 19 | Textiles and wearing apparel and leather | 43 | Other business activities |
| 20 | Paper and publishing products | 44 | Public administration, defence |
| 21 | Coke, petroleum products | 45 | Education |
| 22 | Other chemical products | 46 | Health, social work |
| 23 | Other nonmetallic mineral products | 47 | Recreational, cultural and sporting |
| 24 | Metals | 48 | Other services |
| No | Activity (a) | No | Activity (a) – contd. |
|---|---|---|---|
| 1 | Olive | 19 | Other manufacturing |
| 2 | Growing of cereals and other crops n.e.c. | 20 | Electricity, gas and water supply |
| 3 | Farming animals | 21 | Construction |
| 4 | Forestry | 22 | Maintenance and repair of motor vehicles |
| 5 | Mining and quarrying | 23 | Repair of personal and household goods |
| 6 | Processing of olive oil | 24 | Retail sale |
| 7 | Processing of other vegetable oil and fats | 25 | Wholesale |
| 8 | Processing of basic foods | 26 | Accommodation and Restauration |
| 9 | Processing of dairy products | 27 | Transport, storage |
| 10 | Processing of grain mills and starches | 28 | National post activities |
| 11 | Processing of other food | 29 | Remaining communication |
| 12 | Manufacture of textile | 30 | Financial services |
| 13 | Manufacture of wearing apparels | 31 | Other rental of buildings |
| 14 | Manufacture of paper and publishing articles | 32 | Other real estate and business activities |
| 15 | Manufacture of chemical products | 33 | Other business activities |
| 16 | Manufacture of nonmetallic mineral products | 34 | Education |
| 17 | Manufacture of metals | 35 | Health and social work |
| 18 | Manufacture of machinery equipment | 36 | Other services |
| No | Factors (f) | No | Factors (f) – contd. |
|---|---|---|---|
| 1 | Low-skilled (LS), male, unqualified (UQ), employed in primary sectors | 23 | HS, male, WQ, employed in tertiary sectors |
| 2 | LS, male, UQ, employed in secondary sectors | 24 | HS, male, HQ, employed in primary sectors |
| 3 | LS, male, UQ, employed in construction | 25 | HS, male, HQ, employed in secondary sectors |
| 4 | LS, male, UQ, employed in tertiary sectors | 26 | HS, male, HQ, employed in construction |
| 5 | LS, male, weakly qualified (WQ), em- ployed in primary sectors | 27 | HS, male, HQ, employed in tertiary sectors |
| 6 | LS, male, WQ, employed in secondary sectors | 28 | HS, female, employed in primary sectors |
| 7 | LS, male, WQ, employed in construction | 29 | HS, female, employed in secondary sectors |
| 8 | LS, male, WQ, employed in tertiary sectors | 30 | HS, female, employed in tertiary sectors |
| 9 | LS, male, highly qualified (HQ), employed in primary sectors | 31 | Foreign workers in the domestic market |
| 10 | LS, male, HQ, employed in secondary sectors | 32 | Capital |
| 11 | LS, male, HQ, employed in construction | 33 | Land |
| 12 | LS, male, HQ, employed in tertiary sectors | ||
| 13 | LS, female, employed in primary sectors | No | Domestic institutions |
| 14 | LS, female, employed in secondary sectors | 1 | Government |
| 15 | LS, female, employed in tertiary sectors | 2 | Enterprise |
| 16 | High-skilled (HS), male, UQ, employed in primary sectors | 3 | Kapital account |
| 17 | HS, male, UQ, employed in secondary sectors | 4 | Stock change |
| 18 | HS, male, UQ, employed in construction | ||
| 19 | HS, male, UQ, employed in tertiary sectors | No | Foreign institutions (w) |
| 20 | HS, male, WQ, employed in primary sectors | 1 | Israel |
| 21 | HS, male, WQ, employed in secondary sectors | 2 | Rest of the world |
| 22 | HS, male, WQ, employed in construction | ||
| No | Households (h) |
|---|---|
| 1 | Households in quintile 1 with mostly low skilled members working only for local employers |
| 2 | Households in quintile 1 with mostly low skilled members with at least one working in Israel |
| 3 | Households in quintile 1 with mostly high skilled members working only for local employers |
| 4 | Households in quintile 1 with mostly high skilled members with at least one working in Israel |
| 5 | Households in quintile 2 with mostly low skilled members working only for local employers |
| 6 | Households in quintile 2 with mostly low skilled members with at least one working in Israel |
| 7 | Households in quintile 2 with mostly high skilled members working only for local employers |
| 8 | Households in quintile 2 with mostly high skilled members with at least one working in Israel |
| 9 | Households in quintile 3 with mostly low skilled members working only for local employers |
| 10 | Households in quintile 3 with mostly low skilled members with at least one working in Israel |
| 11 | Households in quintile 3 with mostly high skilled members working only for local employers |
| 12 | Households in quintile 3 with mostly high skilled members with at least one working in Israel |
| 13 | Households in quintile 4 with mostly low skilled members working only for local employers |
| 14 | Households in quintile 4 with mostly low skilled members with at least one working in Israel |
| 15 | Households in quintile 4 with mostly high skilled members working only for local employers |
| 16 | Households in quintile 4 with mostly high skilled members with at least one working in Israel |
| 17 | Households in quintile 5 with mostly low skilled members working only for local employers |
| 18 | Households in quintile 5 with mostly low skilled members with at least one working in Israel |
| 19 | Households in quintile 5 with mostly high skilled members working only for local employers |
| 20 | households in quintile 5 with mostly high skilled members with at least one working in Israel |
| No | Taxes (g) |
|---|---|
| 1 | Production tax |
| 2 | Factor income tax |
| 3 | Direct tax |
| 4 | Excise tax |
| 5 | Value Added Tax |
| 6 | Tariff on imports from Israel |
| 7 | Tariff on imports from the rest of the world |
| 8 | Factor tax use on Low-skilled male unqualified employed in primary sectors |
| 9 | Factor tax use on Low-skilled male unqualified employed in secondary sectors |
| 10 | Factor tax use on Low-skilled male unqualified employed in construction sectors |
| 11 | Factor tax use on Low-skilled male unqualified employed in tertiary sectors |
| 12 | Factor tax use on Low-skilled male weakly qualified employed in primary sectors |
| 13 | Factor tax use on Low-skilled male weakly qualified employed in secondary sectors |
| 14 | Factor tax use on Low-skilled male weakly qualified employed in construction sectors |
| 15 | Factor tax use on Low-skilled male weakly qualified employed in tertiary sectors |
| 16 | Factor tax use on Low-skilled male highly qualified employed in primary sectors |
| 17 | Factor tax use on Low-skilled male highly qualified employed in secondary sectors |
| 18 | Factor tax use on Low-skilled male highly qualified employed in construction sectors |
| 19 | Factor tax use on Low-skilled male highly qualified employed in tertiary sectors |
| 20 | Factor tax use on Low-skilled female employed in primary sectors |
| 21 | Factor tax use on Low-skilled female employed in secondary sectors |
| 22 | Factor tax use on Low-skilled female employed in tertiary sectors |
| 23 | Factor tax use on High-skilled male unqualified employed in primary sectors |
| 24 | Factor tax use on High-skilled male unqualified employed in secondary sectors |
| 25 | Factor tax use on High-skilled male unqualified employed in construction sectors |
| 26 | Factor tax use on High-skilled male unqualified employed in tertiary sectors |
| 27 | Factor tax use on High-skilled male weakly qualified employed in primary sectors |
| 28 | Factor tax use on High-skilled male weakly qualified employed in secondary sectors |
| 29 | Factor tax use on High-skilled male weakly qualified employed in construction sectors |
| 30 | Factor tax use on High-skilled male weakly qualified employed in tertiary sectors |
| 31 | Factor tax use on High-skilled male highly qualified employed in primary sectors |
| 32 | Factor tax use on High-skilled male highly qualified employed in secondary sectors |
| 33 | Factor tax use on High-skilled male highly qualified employed in construction sectors |
| 34 | Factor tax use on High-skilled male highly qualified employed in tertiary sectors |
| 35 | Factor tax use on High-skilled female employed in secondary sectors |
| 36 | Factor tax use on High-skilled female employed in tertiary sectors |
Annex 5
Shares of commodity groups in total exports and shares of exports in domestic output in the West Bank in 2011
| Commodity groups | Shares of exports | Shares of exports in domestic output |
|---|---|---|
| Agricultural and food products | 21.1% | 22.4% |
| Mining products | 0.6% | 12.1% |
| Manufacturing products | 62.8% | 72.4% |
| Services | 15.4% | 3.2% |
| Total | 100% | 14.8% |