Abstract
A three-sector model representative of conditions in the West Bank is tested using pooled sectoral data. The period of study is chosen to be relatively stable and it ranges from 1974 to 1988 (post war and beginning of Intifada). The testing of the labour supply function results in agents preferring to work in the home economy rather than migrate. The sources of growth in migrants were detected in a pool of indigent labour for whom the possibility of employment at home was poor and as such migration became the alternative by necessity.