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Emerging Strains in GCC Labor Markets

Author

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  • Mr. Ugo Fasano-Filho
  • Rishi Goyal

Abstract

Unemployment pressures among nationals are emerging in the Cooperation Council for the Arab States of the Gulf (GCC). 2 At a time when a rapidly growing number of young nationals are entering the labor force and governments are no longer able to act as employers of first and last resort, the non-oil sector continues to rely on expatriate labor to meet its labor requirements in most GCC countries. In this environment, policymakers face the related challenges of addressing unemployment pressures while striking a balance between maintaining a liberal foreign labor policy and a reasonable level of competitiveness of the non-oil sector. Using a matching function framework, this paper examines labor market policies that are likely to expand the ability to hire nationals in the non-oil sector. It finds that an effective labor strategy should focus on strengthening investment in human capital, adopting institutional reforms, and promoting a vibrant non-oil economy.

Suggested Citation

  • Mr. Ugo Fasano-Filho & Rishi Goyal, 2004. "Emerging Strains in GCC Labor Markets," IMF Working Papers 2004/071, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2004/071
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    References listed on IDEAS

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    1. International Monetary Fund, 2003. "United Arab Emirates: Selected Issues and Statistical Appendix," IMF Staff Country Reports 2003/067, International Monetary Fund.
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    Cited by:

    1. 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.
    2. Sameena Hameed, 2020. "Political Economy of Rentierism in the Middle East and Disruptions from the Digital Space," Contemporary Review of the Middle East, , vol. 7(1), pages 54-89, March.
    3. Alessandro Cologni & Matteo Manera, 2011. "Exogenous Oil Shocks, Fiscal Policy and Sector Reallocations in Oil Producing Countries," Working Papers 2011.55, Fondazione Eni Enrico Mattei.
    4. Hend Al Sheikh & S. Nuri Erbaş, 2013. "Labor Income And Oil Wealth: A Broader Sustainability Framework For Saudi Arabia," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1-31.
    5. Durand-Lasserve, Olivier, 2022. "Nationalization of the private sector labor force, quotas, matching and public jobs, an illustration with Saudi Arabia," The Quarterly Review of Economics and Finance, Elsevier, vol. 86(C), pages 98-117.
    6. 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.
    7. Abdelhafid K. Belarbi & Ghaleb A. El-Refae & John A. Ballard & Jamal Abu-Rashed, 2016. "Transnational education in the Gulf Cooperation Council countries: the challenges of internationalisation and quality in higher education," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(2), pages 120-131.
    8. Marzovilla, Olga, 2010. "The impact of global economic imbalance on migrant workers and economies of the Gulf Cooperation Council," MPRA Paper 29466, University Library of Munich, Germany.
    9. Mr. Selim A Elekdag & Mr. Saade Chami & Mr. Ivan Tchakarov, 2004. "What Are the Potential Economic Benefits of Enlarging the Gulf Cooperation Council?," IMF Working Papers 2004/152, International Monetary Fund.
    10. Hertog, Steffen, 2020. "Reforming wealth distribution in Kuwait: estimating costs and impacts," LSE Research Online Documents on Economics 105564, London School of Economics and Political Science, LSE Library.
    11. Cologni, Alessandro & Manera, Matteo, 2013. "Exogenous oil shocks, fiscal policies and sector reallocations in oil producing countries," Energy Economics, Elsevier, vol. 35(C), pages 42-57.
    12. Husam Arman & Simona Iammarino & J Eduardo Ibarra-Olivo & Neil Lee, 2022. "Systems of innovation, diversification, and the R&D trap: A case study of Kuwait [Building Technological Capability in the Less Developed Countries: The Role of a National System of Innovation]," Science and Public Policy, Oxford University Press, vol. 49(2), pages 179-190.
    13. Hertog, Steffen, 2017. "Making wealth sharing more efficient in high-rent countries: the citizens’ income," LSE Research Online Documents on Economics 101305, London School of Economics and Political Science, LSE Library.
    14. Michael Clemens, 2013. "Seize the Spotlight: A Case for Gulf Cooperation Council Engagement in Research on the Effects of Labor Migration," Working Papers id:5567, eSocialSciences.
    15. Squalli Jay, 2012. "Expected Returns to Education and Experience in the United Arab Emirates," Review of Middle East Economics and Finance, De Gruyter, vol. 8(2), pages 1-17, October.
    16. 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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