Abstract:
The main objective of this paper is to investigate if there is an added worker
effect in West Bank over the period 1999 – 2012. More specifically, we will assess the
probability of sibling to enter the labor force in response to his/her male household’s
head loss of employment. After introducing the topic and survey the economic literature
on the issue under study and discussing the data used and introducing the econometric
technique, we estimate a Bivariate Probit model with Panel data to achieve the
aforementioned objective, and we did not accept the added worker hypothesis, and
concluded that the sibling decision whether to participate in the labor force or not is not
directly related to his/her household’s head employment status but rather it depends on
the sibling specific individual characteristics such as age, gender, and educational
attainment.
