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2. Labor Market Nationalization Policies and Firm Outcomes: Evidence from Saudi Arabia
- Author:
- Patricia Cortes, Semiray Kasoolu, and Carolina Pan
- Publication Date:
- 07-2020
- Content Type:
- Working Paper
- Institution:
- The John F. Kennedy School of Government at Harvard University
- Abstract:
- Saudi Arabia is home to the world’s third largest migrant population. Under mounting pressure to increase the private sector employment of Saudis during the last decade, a series of nationalization policies on the labor force have been imposed since late 2011. In this paper, we study how the first nationalization policy, Nitaqat, affected the overall labor market and non-oil firms in the private sector, especially exporting firms. Our rich and novel data allow us to assess the effect of the policy on a wide set of outcomes: employment decisions by composition and size, the output and productivity of exporting firms, labor costs, and exit from the market. Using a difference-in-difference analysis, we compare the 2011 to 2012 change in outcomes between firms above and firms below the threshold required for the minimum share of Saudi workers in a firm. Our results suggest that the policy succeeded in encouraging firms to increase the share of Saudis in private firms. It also increased the share of Saudi women in the workforce, suggesting that the policy had a positive effect on increasing female labor force participation. However, these gains came at a very high cost to firms: our findings suggest that the policy led to a reduced firm size, reduced productivity and output of exporting firms, increased wage bill, increased share of low-skilled Saudi workers, and higher firm exit rates.
- Topic:
- Business, Labor Market, and Nationalization
- Political Geography:
- Saudi Arabia and Gulf Nations
3. Are Politics Local? The Two Dimensions of Party Nationalization around the World, Scott Morgenstern
- Author:
- Arjan H. Schakel
- Publication Date:
- 07-2019
- Content Type:
- Journal Article
- Journal:
- Political Science Quarterly
- Institution:
- Academy of Political Science
- Abstract:
- The statement that geography matters for politics probably will not be contested by many political scientists. Therefore, it is quite surprising that few studies have systematically explored how the territorial distribution of preferences affects political processes and policy outcomes. This book by Scott Morgenstern is an important landmark study that puts geography high on the research agenda of comparative political science. Three features make this book worthwhile reading for scholars working on the nationalization of elections and parties. First, Morgenstern identifies two dimensions of party nationalization and shows that they are theoretically and empirically unrelated. Static nationalization refers to the extent to which party vote shares are homogeneously distributed across districts at a particular point in time. Dynamic nationalization taps into the consistency in the change of a party’s vote shares across time. The combination of these two dimensions leads to a useful fourfold categorization of nationalized, unstable, unbalanced, and locally focused parties. As Morgenstern shows in Chapters 7, 8, and 9, each type of party has different implications for electoral accountability and bill co-sponsorship among legislators.
- Topic:
- Politics, Book Review, Political Science, Political Parties, and Nationalization
- Political Geography:
- Global Focus