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. The other four equations deal with wage interrelationships amongst the various sectors. Labour supply, one of the behavioural equations, is considered an independent variable.
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