Wednesday, July 19, 2006

Ending labor market segmentation :: Gulf News

The paper [by the National Human Resources Development and Employment Authority, Tanmia] suggested measures to reduce segmentation in the labour market, lift restrictions on the mobility of both foreign and national workers, enhance the productivity of nationals and strengthen links between education systems and the labour market.
The paper also proposes abandoning previous policies set to overcome unemployment as they encouraged "paper emiratisation."
I look forward to seeing more details, especially on lifting of restrictions on labor market mobility.

Here's something to ponder:
Another finding showed unemployment was five times higher in low-income households than wealthier ones, which Tanmia says contradicts the belief that unemployment among nationals is voluntary.
It's true that, all else equal, greater wealth means it takes a higher wage to induce you to accept a job. But is all else equal? It could be that the government income support is greatest to low-income households, and it is reduced considerably as your income increases. Such a policy increases the wage required to induce a low-income household to accept a job.



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