The effects of a negative economic shock on male marriage in the West Bank

Abstract

AbstractThis study examines how a large negative economic shock impacts marriage rates for young men in the West Bank. Utilizing data from before and after the sudden and abrupt closure of the Israeli labor market for Palestinian commuters from the West Bank in 2001, our empirical design employs a difference-in-difference strategy and uses the variations in localities’ exposure to the Israeli labor market before the shock. The closure reduced the employment and income of adult men asymmetrically across localities. Our findings show that the closure caused a reduction in marriage rates among young men aged 19 to 29 years, as post-shock changes in marriage rates. Our results suggest that the adverse effect of the economic shock on male marriage is mediated through a combination of rising youth unemployment and rigid expectations about marriage costs.