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Labor Market Nationalization Policies and Exporting Firm Outcomes

Evidence from Saudi Arabia

Bibliographic Data

ID4928482
AuthorsPatricia Cortés (0000-0002-5231-2255, Boston University), Semiray Kasoolu, Carolina Pan (Association for Language Learning)
Year2023
Volume71
Issue4
Pages1397-1426
Publication date2023-07-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomic Development and Cultural Change (JOURNAL)
Journal identifiersISSN: 0013-0079 • E-ISSN: 1539-2988
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/719835
OpenAlexW4378803149
LanguageEN
Citations received1
References cited24

In the past decade, Gulf countries have imposed hiring quotas to promote native participation in the private sector and address unemployment. We explore how one such policy, Nitaqat in Saudi Arabia, affected exporting firms. We find that while the policy increased Saudi employment by these firms, it came at a cost. In the year following implementation, relative to firms above the quota, firms below were 1.5 percentage points more likely to exit the market and 7 percentage points less likely to export, and conditional on exporting, their exports fell by 10%–20%. These short-term effects persisted for at least 3 years

Business · Demographic economics · Economic growth · Economics · Fell · International economics · Labour economics · Private sector · Unemployment · Global trade and economics · International Business and FDI · Socioeconomic Development in MENA

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Unique citing works1
Citations per year1
Citation span2025 - 2025 (1)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 1

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