Emiratization is a government policy aimed at increasing the share of native workers in the UAE private sector. A distinguishing feature of Emiratization is the use of employment quotas for native workers so that the policy objective is met. We study the impact of the labor quota and find that its effect on native employment is ambiguous. While an increase in the employment quota for native workers increases the share of native workers, it also reduces the industry's production and employment of labor. The policy implications of the employment quota are significant, and ways to mitigate its negative impact include calibrating an optimal quota to maximize native employment, implementing the quota in industries facing less elastic demand for outputs and in industries where native and expatriate labor are closer substitutes.
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AbstractPurpose -Most intergenerational mobility studies use data on two generations to estimate the elasticity between son's and father's earnings. The purpose of this paper is to use a data set spanning three generations to estimate additional relationships between a person's earnings and family background yielded by intergenerational mobility models such as Becker-Tomes (1979) model and modified versions of it. Design/methodology/approach -The paper uses data from the 1996 PNAD -a nationally representative household survey in Brazil. The author builds a data set consisting of 5,125 grandfather-father-son triplets by taking advantage of two characteristics of Brazil. First, commonly in Brazil, individuals live with their parents until they marry. Second, individuals tended to quit school and begin working at an early age. As a result, there are many households with adult sons who are not at the very beginning of their working careers. Since the sample is limited to households with adult sons, the author applies Heckman (1979) estimation procedure to address selection bias. Findings -Estimation results contradict some predictions of simple versions of the Becker and Tomes model. The paper proposes a modified version of the Becker and Tomes model that allows for a skipping generation effect, and finds that family background explains 34.9 percent of the variation in earnings among males aged 16-27 in Brazil. If there were no differences in endowments (talent, IQ, health, physical appearance, attitudes toward work, family connections, etc.), the variation in earnings would fall by no less than 26 percent. If it were possible to eliminate differences in investment in human capital, the variation in earnings would fall by at most 21.1 percent.Research limitations/implications -The paper has two main data limitations. First, the 1996 earnings of the fathers and sons are used as proxies for lifetime earnings although the transitory component of one-year earnings may be quite large, particularly at young ages. Second, in spite of the efforts to deal with the sample selection bias, ...
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