In this paper I examine differences in labor patterns in the Bethlehem area by sex. I find that there is considerable occupational segregation, as well as a wage gap between men and women, particularly among less educated women. This wage gap is accentuated by men's and women's differential opportunities vis à vis the Israeli economy. Men working in the Israeli sector, primarily in the construction sector, receive a wage premium, while women, who work primarily as subcontractors to Israeli textile and garment producers, do not and are among the lowest paid workers in the economy.

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