The impact of government regulation on recruitment process, rights, wages and working conditions of labor migrants in the Israeli construction sector

Abstract

To determine the impact of evolving forms of governance on migrant workers’ rights and employment conditions in Israel we first probe the extensive private recruitment industry that developed in Israel before the implementation of bilateral agreements, and examine migrant workers’ employment conditions and wages. Next we show the importance of bilateral agreements for the annulment of illicit practices in labor recruitment, as well as the practical consequences for migrants under the new arrangement. Specifically we scrutinize the impact of implementation of bilateral agreements in the construction sector on recruitment practices and fees, wage levels, and work conditions. Implementation of bilateral agreement were accompanied by dramatic decrease in the sums paid by migrant workers to reach the host country – but did not significantly improve workers’ rights, and their wages even declined. The mechanisms whereby a pool of precarious workers has emerged in the local labor market in Israel are highlighted.