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The Saudis.
The surprising decision has caused a shock in
business and official circles and in labor-exporting countries due to the
millions of expatriate workers in Saudi. Branches of Ministry of Labor and and
General Directorate of Passports of Ministry of Interior were overcrowded with
...
control of capital in the private sector. Citizens have become increasingly
reliant on the social and economic benefits provided by the state, and on the
other hand, state has become independent of society as oil revenues spared the
state the need of collecting taxes from citizens.
Thus, citizens.
Thus, over the years of the second oil boom, the
percentage of Saudi workers to the total labor force accelerated downwards from
74.8% in 1975, to 47.3% in 1980, to 33.3% in 1990. By the dawn of the ninth
decade, with the decrease of oil price, increase of population, and inability
...
whiles citizens themselves find it greedy, opportunistic, and lacking proper
working conditions. As both sides this undesire, Al-Shihabi argues that GCC
governments opted to substitute its Arab employees in their bureaucracies with
citizens, with decreasing expenditures on developmental projects.
Oil
Oil price increase from $22 dollars in 1990 to
its peak, $144 in 2008 which allowed for the accumulation of approximately $2
trillion available for use in mega projects, which promoted the private sector
to continue importing foreign labor, making the population growth rates in the
...
recommendations of International Monetary Fund and International Bank. One of
the characteristics that differentiates the foreign labor this time is reliance
on them by ordinary citizens as a source of income, not just major capitalists.
With
With the saturation of the public sector, some
citizens has opted for the private sector, not as employees but rather as
employers through renting multiple-story buildings and shops, trading of visas,
or working as a front image of establishments managed by expatriate workers,
...
many jobs occupied by the foreign labor.
Theoretically, economy?
Theoretically, on the short-term, immigration or
foreign labor decreases the wages of workers they are in competition with and
increases the wages of complementary workers.
Low-wages foreign labor increase competition on low-skilled jobs. In the
same time, high-wages local labor are benefited because they will pay less in
return of services that low-wages foreign labor provide, which enable them to
specialize in the jobs that suits their skills and educational levels.
For
For instance, the immigration of one million elementary-school-educated workers might result in a severe competition with the elementary-school-educated local workers. In the United States of America, for example, wages of high-school dropouts are negatively affected by