Saturday, September 10, 2005

Bemoaning floating teachers :: Khaleej Times

Labor mobility is a hallmark of healthy, dynamic economies. If workers are not free to change jobs to seek the opportunities (that is, employed with employers how place the highest value on their services), then the economy will suffer.

The UAE places restrictions on labor mobility. The result is a black market in the trade of labor. Like any black market, the trade it permits improves on the allocation of labor resources to their highest and best use. But it also fosters a culture of disrespect for the law. Firms who deal as sellers in this black market actually benefit from the legal restrictions on the freedom of workers to choose. It is these firms who capture the gains from matching the workers to firms who value their services.

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