U<scp>nemployment in the</scp> G<scp>ulf</scp>: T<scp>ime to</scp> U<scp>pdate the</scp>“S<scp>ocial</scp> C<scp>ontract</scp>”

Forstenlechner, Ingo; Rutledge, Emilie

doi:10.1111/j.1475-4967.2010.00437.x

Cited by 114 publications

(104 citation statements)

References 3 publications

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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%

“…As a result, most citizens evince a pronounced preference for public sector employment and many prefer unemployment or staying outside of the workforce to private sector jobs [22,26,33,36,37]. Conversely, private employers prefer foreigners.…”

Section: Labor Market Outcomesmentioning

confidence: 99%

“…At the time of writing, Saudi Arabia was about to roll out a household cash grant system to compensate citizens for future energy price increases. 22 Different from the citizens' income, these cash grants will a) be mean-tested and b) not be tied to public employment or other labor market reforms. While mean-testing can in principle make compensation schemes fiscally cheaper, they are administratively complex, especially in countries without an established income tax system.…”

Section: Labor Marketsmentioning

confidence: 99%

“…21 Targeted subsidies for low-wage workers (like the Earned Income Tax Credit in the U.S.) would have weaker incentive effects relative to the citizens' income, reducing work effort and incentives to upgrade one's skills. 22 See vision2030.gov.sa/sites/default/files/attachments/ BB2020_EN.pdf.…”

Section: Addressing Counterarguments From the Basic Income 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: Addressing Counterarguments From the Basic Income 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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“…From 1999 to 2008, there were consistent declines in the ratio of employed expatriates to nationals in both countries (Baldwin-Edwards, 2011) and the quota-driven policies were largely successful in attracting nationals mainly to government sector jobs (Al-Ali, 2008;Al-Dosary & Rahman, 2005). Since government jobs offer higher salaries, pension, tenure, and shorter working hours, most nationals prefer government jobs to private sector positions or even starting their own business (Forstenlechner et al, 2012;Forstenlechner & Rutledge, 2010).…”

Section: Labour Nationalization Policies: Emiratization and Saudizationmentioning

confidence: 99%

The Emergent Gen Y Workforce: Implications for Labour Nationalization Policies in the UAE and Saudi Arabia

Lim

2014

JBTP

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Career Exploration and Perceived Employability within an Emerging Economy Context

Forstenlechner

Selim

Baruch

et al. 2014

Human Resource Management

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Following four decades of unprecedented economic, social, and cultural change, the United Arab Emirates (UAE) labor market is highly segmented: The native population is almost exclusively employed in the government sector, while the private sector is effectively outsourced to foreigners. This has created an unsustainable situation with growing numbers of young citizens reaching working age and with a public sector that has reached the saturation point. Policymakers repeatedly try to legislate to encourage private‐sector employers to hire citizens. These policies have had limited success. We explored the career attitudes of 2,267 United Arab Emirates citizens prior to their entry into the labor market. Using structural equation modeling, we found that the social contract and resulting expectations toward state employment have strong implications for willingness to work in the private sector. © 2014 Wiley Periodicals, Inc.

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Unemployment in the Gulf: Time to Update the“Social Contract”

Cited by 114 publications

References 3 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

The Emergent Gen Y Workforce: Implications for Labour Nationalization Policies in the UAE and Saudi Arabia

Career Exploration and Perceived Employability within an Emerging Economy Context

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