Since June 2002, the Israeli government has been constructing a wall in and around the West Bank as part of its security strategy. This paper provides an estimate of the impact of the wall on the West Bank economy by analysing various labour market variables, and their gendered outcomes, on the basis of annual data at the regional (governorate) level. Surprisingly, the effects of the wall on unemployment rates are negative and statistically significant for men, suggesting that the construction of the wall may have increased men’s labour demand enough in the short-run to outweigh all other negative impacts. Aside from potential employment opportunities, these results may also point towards the relatively quick adjustment of the labour market to circumvent the direct and indirect costs of the wall and the relatively less costly impact of the wall compared to other elements of the Israeli closure regime, for example checkpoints, gates, and permit restrictions. Furthermore, the study shows that the impact of the wall is not gender neutral, as women’s economic participation declined significantly and more noticeably than men’s. Additionally, the agricultural sector has suffered considerably from the construction of the wall, undoubtedly as a result of the higher transaction costs, the reduced access of some communities to their agricultural land and/or workplace, and the destruction and confiscation of agricultural assets. The impact of the wall on the informal sector and trade are also examined but provide a more mixed set of results, probably due to the large and unquantifiable informal Palestinian economy.