Emerging Strains in GCC Labor Markets

April 1, 2004

Preview Citation

Format: Chicago

Ugo Fasano-Filho, and Rishi Goyal. Emerging Strains in GCC Labor Markets, (USA: International Monetary Fund, 2004) accessed November 12, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Employment, Labor, Labor force, Labor markets, Unemployment, Wages

Keywords: Asia and Pacific, Employment, Europe, GCC countries, GCC country, Labor force, Labor market policies, Labor markets, Matching function framework, Private sector, Reservation wage, Unemployment, Unemployment rate, Wage, Wage bill, Wage expectation, Wages, WP

Publication Details

Pages:

36
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2004/071
Stock No:

WPIEA0712004
ISBN:

9781451849271
ISSN:

1018-5941

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