Assesses the main factors affecting employment in the Arab Gulf region. In particular: What are the main determinants of employment in the region? How do these determinants vary between national and foreign workforces? Have these determinants changed over time? The results, particularly for the 1980‐85 period, suggest that labour market mismatches may be increasing in the Arab World. This is essentially the problem of too many PhDs and too few mechanics. The symptom of this would be relatively high levels of disguised unemployment among the highly educated, coupled with a shortage of artisans. The damage arising from these skill mismatches lies in the way the various economic sectors are likely to expand while faced by labour constraints. These findings suggest that reforms of both the educational system and the hiring practices of Government agencies will be critical to restoring increases in productivity and ultimately expanded rates of non‐oil income.
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