IDEAS home Printed from https://ideas.repec.org/p/erg/wpaper/697.html
   My bibliography  Save this paper

The Oil Curse and Labor Markets: The Case of Saudi Arabia

Author

Listed:
  • Hend Al-Sheikh
  • S. Nuri Erbas

    (International Monetary Fund (IMF))

Abstract

Oil income enables generous government sector wage and employment policies in Saudi Arabia. Combined with availability of low-cost foreign labor and rapidly growing working age population, large disparity between government and private sector salaries skews Saudi worker preferences for government sector employment, increases their reservation wages for private sector employment, and results in high unemployment. Initiatives under 2011 Royal Decrees for increased government sector employment and compensation may further exacerbate Saudi unemployment in the longer run. Oil curse in Saudi Arabia is also on persistent and large Saudi unemployment.

Suggested Citation

  • Hend Al-Sheikh & S. Nuri Erbas, 2012. "The Oil Curse and Labor Markets: The Case of Saudi Arabia," Working Papers 697, Economic Research Forum, revised 2012.
    • Handle: RePEc:erg:wpaper:697
    as

    Download full text from publisher

    File URL: http://erf.org.eg/wp-content/uploads/2014/08/697.pdf
    Download Restriction: no
    File URL: http://bit.ly/2lU04Bg
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    2. International Monetary Fund, 2011. "Chile: Staff Report for the 2011 Article IV Consultation," IMF Staff Country Reports 2011/260, International Monetary Fund.
    3. El Anshasy, Amany A. & Bradley, Michael D., 2012. "Oil prices and the fiscal policy response in oil-exporting countries," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 605-620.
    4. International Monetary Fund, 2002. "Japan: Staff Report for the 2002 Article IV Consultation," IMF Staff Country Reports 2002/175, International Monetary Fund.
    5. Mohsin S. Khan, 2010. "The GCC Monetary Union: Choice of Exchange Rate Regime," Chapters, in: Ronald MacDonald & Abdulrazak Al Faris (ed.), Currency Union and Exchange Rate Issues, chapter 5, Edward Elgar Publishing.
    6. International Monetary Fund, 2002. "Denmark: Staff Report for the 2002 Article IV Consultation," IMF Staff Country Reports 2002/101, International Monetary Fund.
    7. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
    8. International Monetary Fund, 2011. "Bangladesh: Staff Report for the 2011 Article IV Consultation," IMF Staff Country Reports 2011/314, International Monetary Fund.
    9. Mr. Arvind Subramanian & Mr. Francesco Trebbi & Mr. Dani Rodrik, 2002. "Institutions Rule: The Primacy of Institutions over Integration and Geography in Economic Development," IMF Working Papers 2002/189, International Monetary Fund.
    10. International Monetary Fund, 2002. "Nepal: Staff Report for the 2002 Article IV Consultation," IMF Staff Country Reports 2002/205, International Monetary Fund.
    11. International Monetary Fund, 2002. "Slovak Republic: Staff Report for the 2002 Article IV Consultation," IMF Staff Country Reports 2002/209, International Monetary Fund.
    12. ,, 2009. "Economics of Monetary Union," OUP Catalogue, Oxford University Press, edition 8, number 9780199563234.
    13. International Monetary Fund, 2002. "Mongolia: Staff Report for the 2002 Article IV Consultation," IMF Staff Country Reports 2002/252, International Monetary Fund.
    14. International Monetary Fund, 2011. "Dominica: Staff Report for the 2011 Article IV consultation," IMF Staff Country Reports 2011/324, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Moawad Ahmed, Sayed, 2016. "The Impact of Oil Prices on the Economic Growth and Development in the MENA countries," MPRA Paper 89073, University Library of Munich, Germany.
    2. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lars E.O. Svensson, 2003. "Escaping from a Liquidity Trap and Deflation: The Foolproof Way and Others," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 145-166, Fall.
    2. Mr. Vivek Arora, 2007. "Monetary Policy Transparency and Financial Market Forecasts in South Africa," IMF Working Papers 2007/123, International Monetary Fund.
    3. Terry McKinley, 2006. "Gearing Public Finance to Growth, Employment and Poverty Reduction in Moldova," Research Report 3, International Policy Centre for Inclusive Growth.
    4. Mr. Tamon Asonuma & Gerardo Peraza & Kristine Vitola & Mr. Takahiro Tsuda, 2014. "Sovereign Debt Restructurings in Belize: Achievements and Challenges Ahead," IMF Working Papers 2014/132, International Monetary Fund.
    5. Tamon Asonuma & Michael G. Papaioannou & Gerardo Peraza & Kristine Vitola & Takahiro Tsuda, 2017. "Sovereign Debt Restructurings in Belize: Debt Sustainability and Financial Stability Aspects," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(8), pages 5-26, October.
    6. Elsa Fornero, 2015. "Economic-financial Literacy and (Sustainable) Pension Reforms: Why the Former is a Key Ingredient for the Latter," Bankers, Markets & Investors, ESKA Publishing, issue 134, pages 6-16, January-F.
    7. Mr. Andrew Berg & Ms. Luisa Charry & Mr. Rafael A Portillo & Mr. Jan Vlcek, 2013. "The Monetary Transmission Mechanism in the Tropics: A Narrative Approach," IMF Working Papers 2013/197, International Monetary Fund.
    8. Okuda, Hidenobu & 奥田, 英信 & Poleng, Chea & Aiba, Daiju & 相場, 大樹, 2014. "Operational Efficiency and TFP Change of Major Cambodian Financial Institutions:A Data Envelopment Analysis during the 2006-2011 Period," Discussion Papers 2014-02, Graduate School of Economics, Hitotsubashi University.
    9. Fabian Bornhorst & Mr. Ashoka Mody, 2012. "Tests of German Resilience," IMF Working Papers 2012/239, International Monetary Fund.
    10. Sofronis Clerides, 2014. "The Collapse of the Cypriot Banking System: A Bird’s Eye View," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 8(2), pages 3-35, December.
    11. Anna E. Jurczuk & Piotr Pysz, 2016. "Dokąd zmierzał system gospodarczy Polski w latach 1995–2012?," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 5-34.
    12. Serkan Degirmenci, 2011. "Do Institutions Matter for Regional Economic Growth and Development? The Case of Turkey," ERSA conference papers ersa11p1180, European Regional Science Association.
    13. Jeffrey Frankel, 2012. "The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions," Growth Lab Working Papers 36, Harvard's Growth Lab.
    14. Bayari, Celal, 2012. "The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics," MPRA Paper 100875, University Library of Munich, Germany, revised 14 Aug 2012.
    15. Kiichi Tokuoka, 2012. "Intergenerational Implications of Fiscal Consolidation in Japan," IMF Working Papers 2012/197, International Monetary Fund.
    16. Zhiyang Shen & Vivian Valdmanis, 2022. "Assessing total factor productivity across Africa: an empirical investigation," Journal of Productivity Analysis, Springer, vol. 58(2), pages 239-253, December.
    17. Daniela Schwarzer, 2015. "Building the euro area's debt crisis management capacity with the IMF," Review of International Political Economy, Taylor & Francis Journals, vol. 22(3), pages 599-625, June.
    18. Andrés, Javier & Arce, Óscar & Thomas, Carlos, 2017. "Structural reforms in a debt overhang," Journal of Monetary Economics, Elsevier, vol. 88(C), pages 15-34.
    19. Kristina Spantig, 2015. "International monetary policy spillovers—can the RMB and the euro challenge the hegemony of the US dollar?," Asia Europe Journal, Springer, vol. 13(4), pages 459-478, December.
    20. Pierre Berthelier & Alain Desdoigts & Jacques Ould Aoudia, 2003. "«Institutional profiles»: presentation and analysis of an original database of the institutional characteristics of developing, in transition and developed countries," Cahiers de la Maison des Sciences Economiques v04007, Université Panthéon-Sorbonne (Paris 1).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:697. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sherine Ghoneim (email available below). General contact details of provider: https://edirc.repec.org/data/erfaceg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.