Labour Policy and Determinants of Employment and Wages in a Developing Economy with Labour Shortage
May 18, 2010
DOI: 10.1111/j.1467-9914.2010.00474.x
Published in: Labour
Publisher: Wiley
Using data from a sample of 1,099 workers, this paper investigates the determinants of employment and wages for workers in the United Arab Emirates. The paper further examines the wage distribution and the decomposition of the wage gap between the public and the private sectors. Results of the study are consistent with the dual labour market theory and indicate that the labour market in the United Arab Emirates is segmented based on sectors (public versus private) and types of workers (nationals versus non‐nationals). The study concludes with a discussion of the implication of these findings for the effectiveness of labour and economic policy.