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" Saudization or Sustainable Job Program: Two Approaches to Solving Unemployment in Saudi Arabia "
Alrazyeg, Roaa
Forstater, Mathew
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Latin Dissertation
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| Language of Document
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English
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| Record Number
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1051516
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| Doc. No
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TL50633
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| Main Entry
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Alrazyeg, Roaa
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| Title & Author
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Saudization or Sustainable Job Program: Two Approaches to Solving Unemployment in Saudi Arabia\ Alrazyeg, RoaaForstater, Mathew
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| College
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University of Missouri - Kansas City
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| Date
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2019
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| Degree
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Ph.D.
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| student score
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2019
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| Note
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129 p.
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| Abstract
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Over the past two decades, Saudi Arabia has witnessed acceleration in both national unemployment and environmental degradation. These two areas are at the forefront of being very real challenges. In solving the unemployment, a hiring quota program- “Saudization”- has been strictly implemented within the private sector in 2011, which works by replacing non-national employees by nationals. The dissertation seeks to examine the private sector’s capacity to generate enough jobs to address the national unemployment in Saudi Arabia through the lens of employment elasticity. The elasticity is represented by the relationship between labor market and economic growth is one of the traditional concepts in the macroeconomic analysis. Considering the Seemingly Unrelated Regression model in estimating employment elasticity of the non-oil output for nationals and non-nationals, the study has found that the pooled employment elasticity -during the post policy implementation- is still low for nationals. Yet, the elasticity has slightly increased from .30 to .43, while approximately a unity for non-nationals. The study examined the private sector’s absorption of new entrants to fulfill the goal of creating one million and two hundreds jobs by 2022. The private sector needs to have an annual average growth of approximately 5.5%, which is higher than the announced predicted growth that ranges from 2-2.7% annually. After that, an alternative Green Job Guarantee (GJG) program as a sustainable job creation approach has been proposed to ensure environmental sustainability as well as employment for everyone who is ready and able to work. This method functions according to the derivation of a GJG synthetic sector from the existing sectors through the utilization of the input-output table (2015). The result shows that the total estimated cost of the GJG program (employing 1.2 million jobless with a salary of SAR7, 000 for full time jobs, and 3, 500 for part time jobs including the program’s material costs) would not exceed SR 116,361 billion or 4.5% of GDP. The public private people partnership (P4) approach has been recommended in implementing the program as essential to assert the role of people in solving environmental community issues and hence initiating small and large-scale projects.
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| Descriptor
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Economics
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Forstater, Mathew
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University of Missouri - Kansas City
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