This study is one of the few ever to analyse and simulate macroeconomic polices in the Gaza Strip alone. Given the special circumstances of Gaza, it attempted to comprehend the effect of macroeconomic policies on the labour market by means of an econometric model that was specially developed for the Gaza Strip by MAS. The model consists of three main groups: the first group includes nine behavioural equations; four are related to labour demand in the four main economic sectors and one deals with labour in Israel.

This paper is intended to further stimulate thedebate on the vision for the development of the Palestinian economy. It examines the identity of the Palestinian economy and its desired structure, looks the role that should be played by the various development partners, and explores the nature of the relationships that connect Palestine with its Arab neighbours and the rest of the international community. The Palestinian National Authority, the private sector and NGOs need to cooperate to come up with answers about the optimal direction of long-term development.

Small and Medium Enterprises (SMEs) constitute 95% of the existing economic institutions in Palestine, and are the largest employers. The Palestinian National Authority became aware of the importance of such projects in economic development, so they started various studies on how to support and encourage SMEs.

This study aims at assessing the level of compliance with the Labor Law No. 7 of the year 2000. The labor law is considered crucial because of its long term influence on both society and economy. It should provide a work environment of balanced cooperation between all partners of production. It should also foster a competitive environment in the job market and thus assure the rational distribution of resources and the stimulation of productivity.