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The Impact of Minimum Wage Law on Employment in Saudi Arabia: An Economic and Legal Analysis

المصدر: المجلة العربية للنشر العلمي
الناشر: مركز البحث وتطوير الموارد البشرية - رماح
المؤلف الرئيسي: Balila, Basel (Author)
مؤلفين آخرين: Al-Makky, Rawa (Co-Author)
المجلد/العدد: ع52
محكمة: نعم
الدولة: الأردن
التاريخ الميلادي: 2023
الشهر: شباط
الصفحات: 10 - 23
ISSN: 2663-5798
رقم MD: 1436602
نوع المحتوى: بحوث ومقالات
اللغة: الإنجليزية
قواعد المعلومات: EduSearch, HumanIndex
مواضيع:
كلمات المؤلف المفتاحية:
Minimum Wage | Unemployment | Labor Productivity | International Labor Organization | Women’s Rights | Saudi Arabia
رابط المحتوى:
صورة الغلاف QR قانون
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041 |a eng 
044 |b الأردن 
100 |9 760239  |a Balila, Basel  |e Author 
245 |a The Impact of Minimum Wage Law on Employment in Saudi Arabia:  |b An Economic and Legal Analysis 
260 |b مركز البحث وتطوير الموارد البشرية - رماح  |c 2023  |g شباط 
300 |a 10 - 23 
336 |a بحوث ومقالات  |b Article 
520 |b The minimum wage law is a controversial topic. It has been extensively debated and discussed among politicians, economists, and researchers. On the one hand, increasing the minimum wage would raise income for low-skilled workers and help them escaping poverty. On the other hand, a rise in the minimum wage means higher costs for firms which would lead to either higher prices for consumers or job losses for low-skilled workers or both, as firms cut higher expense through transferring it to their customers, or replacing low-skilled workers with automated machines, or both. This paper discusses this longstanding debate from an economic and legal perspective by empirically analyzing the labor market in Saudi Arabia. In November 2020, Saudi Arabia increased the minimum wage for its citizens by 33 percent from 3,000 to 4,000 riyals per month. We examined the impact of this minimum wage increase on the unemployment rate in the Saudi labor market using an Ordinary Least Squares (OLS) regression model and found no evidence of job losses. On the contrary, we found significant positive effects on the employment of Saudi citizens. We also showed that the increase in the minimum wage is correlated with an increase in labor productivity, with an annual growth rate of 4.4%. This result supports the efficiency wage theory. On the negative side, we find that the unemployment rate of Saudi women is on average five times higher than that of Saudi men and that the wages of Saudi men are 75% higher than those of Saudi women. Recently, however, these difficult labor market figures for women have improved significantly because of the Saudi labor reform initiatives, particularly reforms that have expanded women's rights and increased their economic participation. 
653 |a قانون العمل  |a الحد الأدنى للأجور  |a سوق العمل  |a معدلات البطالة  |a الاقتصاد السعودي 
692 |b Minimum Wage  |b Unemployment  |b Labor Productivity  |b International Labor Organization  |b Women’s Rights  |b Saudi Arabia 
700 |9 760240  |a Al-Makky, Rawa  |e Co-Author 
773 |4 العلوم الإنسانية ، متعددة التخصصات  |4 العلوم الاجتماعية ، متعددة التخصصات  |6 Humanities, Multidisciplinary  |6 Social Sciences, Interdisciplinary  |c 002  |e Arab journal for scientific publishing  |f al-Mağallaẗ al-ʿarabiyyaẗ li-l-našr al-ilmī  |l 052  |m ع52  |o 2502  |s المجلة العربية للنشر العلمي  |v 000  |x 2663-5798 
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995 |a HumanIndex 
999 |c 1436602  |d 1436602 

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