<b>Compensation Determinants and Its Relationship to Performance in the Public Sector of Palestine: The West Bank Versus Gaza Strip</b><b></b>

This study investigates the determinants of wages and compensation in the Palestinian public sector and their potential implications for performance. It examines compensation rates and analyzes reasons for variation between the West Bank and the Gaza Strip. Adopting a descriptive approach, the study reviews relevant literature and incorporates insights from interviews with six specialists in the Palestinian public sector. The findings reveal logical reasons for disparities in compensation between the two regions and suggest that factors such as job scarcity and limited alternatives sustain the relationship between compensation and performance, despite significant differences in wage rates. This study uniquely explores the motivations for seeking public office in two geographically distinct yet interconnected areas of Palestine while addressing the sensitive political context and complex circumstances. The significance of this study lies in capturing perspectives of governmental specialists who seldom have the opportunity to discuss the political divisions affecting Palestinian community and governance. Recommendations include ensuring fairness in compensation disbursement by standardizing wage rates across regions and conducting further quantitative and survey-based research. The paper argues that a more effective accountability mechanism will deter the opportunistic behaviors of managers engaging in earnings management.