Migrant earnings gaps in Gulf Cooperation Council countries: employers' perceptions or opportunity costs?

Fuente: Organización Internacional del Trabajo (OIT)
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Main Authors: Usamah F. Alfarhan, Samir Al-Busaidi
Format: Artículo científico
Published: International Labour Organization 2019
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author Usamah F. Alfarhan
Samir Al-Busaidi
author_facet Usamah F. Alfarhan
Samir Al-Busaidi
Usamah F. Alfarhan
Samir Al-Busaidi
contents Migrant earnings gaps in Gulf Cooperation Council countries: employers' perceptions or opportunity costs? Usamah F. Alfarhan Samir Al-Busaidi This article discusses earnings differentials among skilled Western, Arab and Asian migrants, who constitute most of the private sector labour force in Gulf Cooperation Council (GCC) countries, during the period 2012–14. Using two standard decomposition methodologies, it investigates the view that Westerners are paid premium rates due to the unobserved perceptions of private employers. The results indicate that while one‐third to three‐quarters of real hourly earnings differentials are attributable to differing observed levels of productivity‐related characteristics, the remainder are due to the incorporation of higher opportunity costs for Westerners into the bargaining process. The potential effect of unobserved perceptions is found to be irrelevant to observed earnings differentials. 10.1111/ilr.12140 DOI https://doi.org/10.1111/ilr.12140 publication.journalArticle
format Artículo científico
id ilo_995218653302676
institution Organización Internacional del Trabajo (OIT)
publishDate 2019
publisher International Labour Organization
spellingShingle Migrant earnings gaps in Gulf Cooperation Council countries: employers' perceptions or opportunity costs?
Usamah F. Alfarhan
Samir Al-Busaidi
Migrant earnings gaps in Gulf Cooperation Council countries: employers' perceptions or opportunity costs? Usamah F. Alfarhan Samir Al-Busaidi This article discusses earnings differentials among skilled Western, Arab and Asian migrants, who constitute most of the private sector labour force in Gulf Cooperation Council (GCC) countries, during the period 2012–14. Using two standard decomposition methodologies, it investigates the view that Westerners are paid premium rates due to the unobserved perceptions of private employers. The results indicate that while one‐third to three‐quarters of real hourly earnings differentials are attributable to differing observed levels of productivity‐related characteristics, the remainder are due to the incorporation of higher opportunity costs for Westerners into the bargaining process. The potential effect of unobserved perceptions is found to be irrelevant to observed earnings differentials. 10.1111/ilr.12140 DOI https://doi.org/10.1111/ilr.12140 publication.journalArticle
title Migrant earnings gaps in Gulf Cooperation Council countries: employers' perceptions or opportunity costs?
url https://researchrepository.ilo.org/esploro/outputs/journalArticle/Migrant-earnings-gaps-in-Gulf-Cooperation/995218653302676