Abstract
Palestinian uprising, ‘intifada’, aggravated the recession of 2001–2004 in Israel which dampened demand for labor in all industries except security services. We use this exogenous shock to study whether a cohort of young men who were attached to temporary jobs as security guards for unusually long periods of time during the intifada landed on an inferior career path, as compared to security guards from a pre-intifada cohort. We find that the intifada cohort had less employment mobility, were ultimately less connected with the labor market, and earned less on jobs after the security services, relatively to the pre-intifada cohort.
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