The effect of minimum wage changes on local workers employmentin the private sector in a unique environment

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Abstract

This study examines the effect of government minimum wage increases on local workers in the private sector and employment in a unique environment where a quote system between local and foreign workers is used in different industries. The results suggest that the increase in minimum wage by 16. 67% causes a declinein employment among local workers by 2. 7%, 8. 3%, 9. 6%, 7. 6% and 2. 8% in technical support and infrastructure jobs in IT sector, technicians in telecom sector, car rent in the travel and tourism sector, accountants in the consultancy services sector, and nonacademic in private education, respectively.

Original languageEnglish
Pages (from-to)335-345
Number of pages11
JournalInternational Journal of Economic Research
Volume13
Issue number1
Publication statusPublished - 2016

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Keywords

  • Elasticity
  • Labor market
  • Minimum wage
  • Omanization
  • Private sector

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics, Econometrics and Finance(all)

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