Israel: Services Travel: Expenditures of foreign workers

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Israel: Services Travel: Expenditures of foreign workers

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Introduction

• Export of Travel services includes goods and services for own use from the domestic economy, expenditures of tourists- business and personal.
• Travel services- Business are divided into 2 groups: expenditures of foreign workers and other.
• Expenditures of illegal foreign workers in Israel are included in this item.

Scope, Methodology, Compilation Practices, and Data Sources

• Estimation approach:
  • Expenditures of foreign workers in Israel are calculated by number of foreign workers multiplied by estimated average expenditure of foreign worker.
  • The estimation is calculated every quarter in Balance of Payments sector.
  • The data included in the national accounts at the export component.
• Coverage rules:
  • The number of foreign workers include: reported employee and unrecorded employee, and do not include Palestinian workers (the assumption is that their expenses are low because they return home every night).
• Data sources for the number of foreign workers:
  • Illegal workers: information about entries of residents from developing countries which staying above a certain time in Israel. The data is derived from Population and immigration authority and the Demographic department in the CBS.
  • Work permits: administrative files (border control data, Population and immigration authority).
  • Unregistered foreign workers: data based on Population and Immigration Authority.
• Basis for expenditure estimates:
  • Estimates of expenditure per worker are based on administrative data.

Current Challenges and Conclusions

• Exclusion and assumptions:
  • The expenses of Palestinian workers are not included in the estimation. They return home every night, therefore the assumption is that they don't have accommodation and food expenditures.
  • However, some of the workers travel by public transport. The plan is to estimate those expenses and to add it to the estimate.
• Coverage inconsistency with guidelines:
  • According to the guidelines, workers who are in Israel for up to one year must be included, but currently data are also included foreign workers who stay for over a year.
  • This is being developed and will be updated in the future.

References

• Informal Economy Reports