Employment of Foreign Workers in Israel under the "Binding Arrangement"
Yoram Ida

Abstract
This study examines the effects of a restrictive employment method for foreign workers that tied foreign workers to the employer holding the permit, formerly customary in Israel in all sectors which employed foreign workers. Using a decision making model, the study examines the phenomenon of illegal employment among foreign workers in the construction sector, and evaluates the expected effects of the new employment arrangement which was applied in the construction sector in 2005. In which a limited number of corporations were licensed to employ a limited number workers in a specific sector, under a strict government regulation The first recommendation is to tightly monitor the manpower corporations to prevent the creation of a cartel which will coordinate the workers' employment conditions among the corporations. At the same time it is necessary to combat the problem of charging high fees from foreign workers for work permits in Israel.

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