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dc.contributor.authorCortes, Patricia
dc.contributor.authorKasoolu, Semiray
dc.contributor.authorPan, Carolina
dc.date.accessioned2020-11-24T16:51:57Z
dc.date.issued2020-07
dc.identifier.citationCortes, Patricia, Semiray Kasoolu, and Carolina Pan. “Labor Market Nationalization Policies and Firm Outcomes: Evidence from Saudi Arabia.” CID Working Paper Series 2020.381, Harvard University, Cambridge, MA, July 2020.en_US
dc.identifier.urihttps://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37366417*
dc.description.abstractSaudi Arabia is home to the world’s third largest migrant population. Under mounting pressure to increase the private sector employment of Saudis during the last decade, a series of nationalization policies on the labor force have been imposed since late 2011. In this paper, we study how the first nationalization policy, Nitaqat, affected the overall labor market and non-oil firms in the private sector, especially exporting firms. Our rich and novel data allow us to assess the effect of the policy on a wide set of outcomes: employment decisions by composition and size, the output and productivity of exporting firms, labor costs, and exit from the market. Using a difference-in-difference analysis, we compare the 2011 to 2012 change in outcomes between firms above and firms below the threshold required for the minimum share of Saudi workers in a firm. Our results suggest that the policy succeeded in encouraging firms to increase the share of Saudis in private firms. It also increased the share of Saudi women in the workforce, suggesting that the policy had a positive effect on increasing female labor force participation. However, these gains came at a very high cost to firms: our findings suggest that the policy led to a reduced firm size, reduced productivity and output of exporting firms, increased wage bill, increased share of low-skilled Saudi workers, and higher firm exit rates.en_US
dc.language.isoen_USen_US
dc.publisherCenter for International Development at Harvard Universityen_US
dc.relation.isversionofhttps://www.hks.harvard.edu/centers/cid/publicationsen_US
dash.licenseLAA
dc.titleLabor Market Nationalization Policies and Firm Outcomes: Evidence from Saudi Arabiaen_US
dc.typeResearch Paper or Reporten_US
dc.description.versionAccepted Manuscripten_US
dc.relation.journalCID Working Paper Seriesen_US
dc.date.available2020-11-24T16:51:57Z
dash.contributor.affiliatedCortes, Patricia
dash.contributor.affiliatedKasoolu, Semiray


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