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Labour Policy and Determinants of Employment and Wages in a Developing Economy with Labour Shortage

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  • Ibrahim Mohamed Abdalla
  • Mohammed A. Al-Waqfi
  • Nasri Harb
  • Rafiq H. Hijazi
  • Taoufik Zoubeidi

Abstract

Using data from a sample of 1,099 workers, this paper investigates the determinants of employment and wages for workers in the United Arab Emirates. The paper further examines the wage distribution and the decomposition of the wage gap between the public and the private sectors. Results of the study are consistent with the dual labour market theory and indicate that the labour market in the United Arab Emirates is segmented based on sectors (public versus private) and types of workers (nationals versus non-nationals). The study concludes with a discussion of the implication of these findings for the effectiveness of labour and economic policy. Copyright 2010 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd.

Suggested Citation

  • Ibrahim Mohamed Abdalla & Mohammed A. Al-Waqfi & Nasri Harb & Rafiq H. Hijazi & Taoufik Zoubeidi, 2010. "Labour Policy and Determinants of Employment and Wages in a Developing Economy with Labour Shortage," LABOUR, CEIS, vol. 24(2), pages 163-177, June.
  • Handle: RePEc:bla:labour:v:24:y:2010:i:2:p:163-177
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    Cited by:

    1. Rutledge, Emilie & Alkaabi, Khaled, 2017. "‘Private sector’ Emiratisation: job satisfaction and sociocultural influences," MPRA Paper 76931, University Library of Munich, Germany.
    2. Ryan, James Christopher, 2016. "Old knowledge for new impacts: Equity theory and workforce nationalization," Journal of Business Research, Elsevier, vol. 69(5), pages 1587-1592.

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