Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/90777 
Year of Publication: 
2013
Series/Report no.: 
Memorandum No. 18/2013
Publisher: 
University of Oslo, Department of Economics, Oslo
Abstract: 
We study the political economy of migration policies in oil-rich Gulf countries focusing on two policy dimensions: a) the number of migrants allowed into the country and b) the assimilation of migrants, where less assimilated migrants on short-term contracts remit more. We develop a two goods macro model with traded and non-traded goods. The migration of guest workers leads to a wage drop hurting citizen workers, while capitalists and oil rent earners benefit. When foreign exchange is remitted out of the economy, the real exchange rate depreciates. The remittance outflow benefits oil rent earners while capitalists and workers lose. Hence the three classes of domestic agents have diverging interests with regard to their preferred policy mix. The results are important for understanding the changes in migration policy in the Gulf, in particular in relation to the sharing of oil rents and on the political influence of the working class and the capitalists.
Subjects: 
Migration
Natural Resources
Gulf countries
JEL: 
O15
F22
P16
Document Type: 
Working Paper

Files in This Item:
File
Size
381.65 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.