A Comparative Assessment of Labor Market Nationalization Policies in the GCC

Hertog, Steffen

doi:10.2307/j.ctt1s474nj.5

Cited by 25 publications

(22 citation statements)

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“…Administrations often perform poorly due to overstaffing and weak incentive systems [19][20][21][22][23][24].…”

Section: Labor Market Outcomesmentioning

confidence: 99%

“…7 There are huge direct and indirect costs to surplus public employment: a large, usually dominant share of potentially productive national manpower is ''parked'' in jobs, whose economic contribution is questionable. Public sector employment policies give questionable education incentives, leading to an undersupply of national skills relevant in the private market [23]. Public sector over-employment also creates large, unnecessary overhead costs and negative environmental and infrastructure externalities [39].…”

Section: Labor Market Outcomesmentioning

confidence: 99%

“…Conversely, secure cash grants could make hiring and firing nationals less socially and politically problematic, thereby bringing citizen employment closer to the flexibility that employers currently enjoy with migrant workers [23].…”

Section: Labor Marketsmentioning

confidence: 99%

“…In any case, with the exception of Equatorial Guinea and to some extent Gabon, HRCs generally have stronger administrative capacity than low-to mid-rent countries. 23 Two more counterarguments not present in the literature are worth considering: first, one potential danger of creating a citizens' income is that it might in the future again be complemented by other, less efficient ways of rent circulation. This is why the simultaneous implementation of cash grants and subsidy and public employment reforms is crucial, and why public awareness of this quid pro quo needs to be built before any reforms.…”

Section: Counterarguments From the Rentier Cash Grant Literaturementioning

confidence: 99%

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Making wealth sharing more efficient in high-rent countries: the citizens’ income

Hertog

2017

Energy Transit

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This paper argues that hydrocarbon producers with high rents per capita constitute a specific category in the broader universe of rent-dependent countries, facing a specific set of development challenges that are not shared by mid-rent countries. It surveys patterns of rent distribution in high-rent countries (HRCs), focusing on energy subsidies and excessive public employment, and argues that these result in declining energy efficiency and labor productivity as well as exclusion of nationals from the private labor market. It then proposes unconditional cash grants for HRC citizens in combination with subsidy and public employment reform as a mitigation strategy to minimize the HRC-specific distortive effects of rent distribution. It is shown that none of the conventional counterarguments to unconditional cash grants applies in the context of HRCs.

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“…Administrations often perform poorly due to overstaffing and weak incentive systems [19][20][21][22][23][24].…”

Section: Labor Market Outcomesmentioning

confidence: 99%

Section: Labor Market Outcomesmentioning

confidence: 99%

Section: Labor Marketsmentioning

confidence: 99%

Section: Counterarguments From the Rentier Cash Grant Literaturementioning

confidence: 99%

See 2 more Smart Citations

Making wealth sharing more efficient in high-rent countries: the citizens’ income

Hertog

2017

Energy Transit

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“…The nationalization policies are applied years. In this respect, the employment policies of dominant public sector create significant differences between the working environment of public and private sectors [13]. Through the nationalization policies, governments have been trying to shift the employment structure from public dominant to market oriented.…”

Section: Challengesmentioning

confidence: 99%

Getting Ready for the Post-Oil Age: The Entrepreneurship as the Rising Star of Development Policies in the Gulf States

Işık¹

2018

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Gulf Cooperation Council countries have been offering opportunities to attract global investors for a while. Yet, the strong tension between the existing government structures and the democratic elements that are needed for investments to flourish creates a complicated economic environment. Besides, the external dynamics sourced from international relations in the region add a new dimension to the problem. For many economies of the same characteristics, governmental supports for entrepreneurial activities rise as a natural solution for many problems. Is it the case for the Gulf States, too? This study, first, draws a framework in order to explore the extent of the new entrepreneur-led growth policies in the region and relates the possible policies to the existing economic problems. Then, three markets, the Kuwaiti labor market which is a good representative of other Gulf States' labor markets, renewable energy markets and biotechnology markets which have increasing roles in new industrial policies, are studied to examine the challenges and the opportunities created by these government policies. The study reveals numerous opportunities offered to entrepreneurs and investors, however further requirements to improve the conditions necessary for entrepreneur-led growth are advised as policy purposes.

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Ethnocracy in the Arab Gulf States: Oil Rent, Migrants and Authoritarian Regimes

Matsuo

2019

International Labour Migration in the Middle East and Asia

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A Comparative Assessment of Labor Market Nationalization Policies in the GCC

Cited by 25 publications

References 0 publications

Making wealth sharing more efficient in high-rent countries: the citizens’ income

Making wealth sharing more efficient in high-rent countries: the citizens’ income

Getting Ready for the Post-Oil Age: The Entrepreneurship as the Rising Star of Development Policies in the Gulf States

Ethnocracy in the Arab Gulf States: Oil Rent, Migrants and Authoritarian Regimes

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