The low wages earned by Palestinians working in Israel may undermine the salaries of unskilled Israeli workers, the Bank of Israel says.
The bank's report, which looked into Palestinian employment in Israel, showed a roughly 20% increase in the employment of Palestinians in Israel in the years 2002-2008.
"The growth in Palestinian employment in Israel contributed to the Palestinian economy's recovery in Judea and Samaria and produced revenues of $649 million in 2008, which constituted more than 10% of Palestinian production," the report said.
According to the Bank of Israel, about 44,000 Palestinians from Judea and Samaria worked in Israel in 2008, including 25,000 with permits and about 16,000 employed illegally. Almost all Palestinian workers in Israel are men, the report said.
In addition, the report noted that legal PA laborers earn an average of NIS 210 (about $55) for every day of work in Israel, compared to about NIS 124 (roughly $35) for illegal workers.