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The political economy of emiratization in the UAE

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  • Hugo Toledo

Abstract

Purpose - The purpose of this paper is to illustrate the difficulties of implementing emiratization, a policy that aims at increasing the participation of native workers in the UAE private sector by means of a government mandate. A second objective of the paper is to explore the conditions under which the emiratization policy can potentially increase the participation of native workers in the UAE private sector. Design/methodology/approach - An extension of the Ramsey Rule is used as a relevant application for this study to show that within the context of a break‐even constraint, any deviation between the wage rate and the marginal factor cost that is not proportional to the deviation between the marginal revenue product and the marginal factor cost could affect the firm labor demand and profitability. Findings - The theoretical models support the recommendations that the emiratization policy will tend to achieve some level of success in the short‐run, if implemented in firms that are operating in imperfectly competitive markets. In the medium‐run, a higher level of labor mobility for migrant workers could potentially increase employment opportunities for native workers. Originality/value - The literature on labor protection in the GCC is almost non‐existent. This paper explores conditions under which given an externally imposed constraint on native employment, the participation of native workers in the UAE private sector could increase.

Suggested Citation

  • Hugo Toledo, 2013. "The political economy of emiratization in the UAE," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 40(1), pages 39-53, January.
    • Handle: RePEc:eme:jespps:v:40:y:2013:i:1:p:39-53
    DOI: 10.1108/01443581311283493
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    Citations

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    Cited by:

    1. Michael, Noela & Fotiadis, Anestis, 2022. "Employee turnover: The hotel industry perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(1), pages 38-47.
    2. Osiris Jorge Parcero & James Christopher Ryan, 2017. "Becoming a Knowledge Economy: the Case of Qatar, UAE, and 17 Benchmark Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(4), pages 1146-1173, December.
    3. Ashish Malik & Vijay Pereira & Pawan Budhwar & Fabian Jintae Froese & Dana Minbaeva & James Sun & Anh Tuan Nguyen & Shanzi Xue, 2022. "Multilevel relational influences on HRM practices: a cross-country comparative reflective review of HRM practices in Asia," Asian Business & Management, Palgrave Macmillan, vol. 21(5), pages 745-779, November.
    4. 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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