ABSTRACT:

“The family decision model suggests that families don’t send their kids to work unless they are faced with reduction in income due to decrease in economic activities. However, this study reveals that an increase in national output and income, measured by GDP and GNI per capita in Palestine does not result in a decline in the supply of child labor. Economic shocks in Palestine as a result of Israeli policies have significant positive effects on child labor supply. The study indicates that while child labor increased in the years where overall national income declined, supply of child labor persisted during year when income and employment increased. Child labor supply in Palestine could be concluded to be a “complement” factor for adults’ employment.”