Assessing the Role of Foreign Labour on Saudi Labour Unemployment in Saudi Arabia

Tarek Tawfik Yousef Alkhateeb, Nasser Saad Alkahtani and Haider Mahmood ()

MPRA Paper from University Library of Munich, Germany

Abstract: Saudi labour unemployment is a very serious issue in Saudi Arabia which is further increasing with over dependence on foreign labour. This study empirically investigates this issue by employing ARDL cointegration technique on a sample period of 1980-2015. Our estimates suggest that foreign labour, wage rate and female participation are responsible for an increasing Saudi labour unemployment. On the other hand, number of graduates and government social security benefits are helping in combating Saudi labour unemployment. Therefore, our study recommends the Saudi government to control foreign labour inflows up to some reasonable limit, to rationalize the minimum wage rate and to increase spending on education and social security benefits. Social Security Benefits; Cointegration

Keywords: Key Words: Saudi Labour Unemployment; Foreign Labour (search for similar items in EconPapers)
JEL-codes: J6 (search for similar items in EconPapers)
Date: 2017-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published in International Journal of Applied Business and Economic Research 22.15(2017): pp. 99-109

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:109449

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