ABSTRACT
Palestinian labour flows have played a key role in integrating the economies of the West Bank and Gaza Strip (WBGS) into Israel since the 1967 occupation. Between 1970 and 1993, Palestinian labour flows to Israel anchored the WBGS’ dependence on Israeli goods and trade relations and tied the absorption of the Palestinian labour force to Israeli demand for Palestinian goods and services. Palestinian daily commuters, predominantly unskilled male labourers, represented one-third of the employed population and generated more than a quarter of the WBGS’ GNP over most of this period. Their income helped finance the Palestinian trade deficit while at the same time allowing WBGS’ per capita income to more than double between 1970 and 1992 (UNCTAD 1993, World Bank 1993, Arnon et al. 1997).
