Youth Unemployment, Terrorism and Political Violence, Evidence from the Israeli/Palestinian Conflict

This paper analyzes the relationship between youth unemployment and Palestinian violence. First a qualitative explanation of the underlying mechanism is given. Eventually, empirical results suggest that there is a positive association between the growth rate of youth unemployment and the brutality and incidence of violence, proxied by the numbers of victims, and incidents. Results also show that: (i) there is a negative association between the added value in the agricultural sector and both measures of violence; (ii) there is a positive association between the share of employment in agriculture and violence; (iii) there is a negative association between manufacturing added value and brutality of incidents. Results also suggest that male youth unemployment rather than female unemployment helps to explain Palestinian violence.