ABSTRACT

Construction in the two territories was marked by the preponderance of private building, which in turn employed two-thirds of the sector's total workers and absorbed as much of gross investment in the West Bank. The difference between construction's share in domestic output and employment may be explained by high labor productivity in construction sector and by unpaid family labor working on weekend vacation from employment in Israel. The service sectors consist of several heterogeneous activities, including transport, trade, tourism, and public services, in addition to various kinds of personal services. The government of Jordan assumed responsibility for the provision of public services such as health, education, welfare, and defense in the West Bank before the war. The occupation of the West Bank in general and the incorporation of Arab Jerusalem into Israel in particular dealt the tourism industry a severe blow.