Economic Impact of Immigration Policies on Labor Market in Dubai

Purpose: The aim of the study was to assess the economic impact of immigration policies on labor market in Dubai. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study indicated that immigrants can complement native workers by filling gaps in the labor market, particularly in sectors with labor shortages. This can lead to increased productivity and economic growth. Additionally, immigrants often take up jobs that locals are less willing to do, which can help businesses stay competitive. However, there are also concerns that large influxes of immigrants might lead to downward pressure on wages, especially for low-skilled workers, and potentially contribute to job displacement in certain industries. These effects can vary depending on factors such as the skill level of the immigrants, the structure of the economy, and the specific policies in place. Overall, the economic impact of immigration policies on labor markets is multifaceted, with both positive and negative consequences that require careful consideration and analysis. Implications to Theory, Practice and Policy: Supply and demand theory, skill-biased technological change theory and institutional theory may be used to anchor future studies on assessing the economic impact of immigration policies on labor market in Dubai. Conduct comparative studies across different economic contexts, including both developed and emerging market economies. Encourage central banks and policymakers to strengthen their communication strategies to better manage inflation expectations. Clear and transparent communication about policy objectives, strategies, and economic outlook can anchor expectations and enhance the effectiveness of monetary policy tools.