Kuwait is a small, developing oil-producing country with a total population of approximately 2.6 million. Kuwaiti citizens represent approximately 40% of the total population. Less than 20% of the total labour force are Kuwaiti citizens. The government sector acts as the main provider of jobs for Kuwaiti citizens. Approximately three-quarters of Kuwaiti citizens are employed in the public sector, whereas non-Kuwaitis represent over 90% of the private sector labour force. The aim of this thesis is to assess the factors determining demand for and supply of national labour in the State of Kuwait. A number of surveys are conducted to collect information on issues relating to the views of employers and employees regarding various aspects of the labour market. The results of the surveys are analysed using multivariate statistical techniques. The sample results of this thesis suggest that approximately 80 percent of Kuwaiti male workers and 96 percent of Kuwaiti female workers are employed in the Government sector, while approximately 11 percent of Kuwaiti males and less than three percent of Kuwaiti females are employed in the private sector. Approximately nine percent of Kuwaiti males and two percent of Kuwaiti females work in the mixed government-private sector. The majority of Kuwaiti citizens seem to be employed as professionals, clerks and services. Twenty percent of Kuwaiti males and 49 percent of Kuwaiti females are professionals, while 51 percent of both Kuwaiti males and Kuwaiti females work as clerks. Many researchers have devoted their time and skill to analysing factors affecting the demand for supply of labour, the impact of wage differentials on employment, the role of government in offering employment and how to minimize the percentage of unemployment. Only a few researchers have given their attention to labour force issues in Middle Eastern countries. This thesis attempts to close some of the existing gaps in the literature on the Kuwaiti economy. In particular, it examines the distribution of manpower in the state of Kuwait; analyses the structure of employment of Kuwaiti citizens; evaluates the main motives of Kuwaiti citizens in searching for jobs in the public sector; and examines the reasons why firms operating in the private sector prefer to employ expatriates rather than Kuwaiti citizens. It also models decisions by Kuwaiti female citizens to participate in the labour force and decision as to whether an unemployed Kuwaiti will join the market conditions for Kuwaiti citizens over the next five years. In order to achieve these objectives, this thesis conducted surveys based on random samples, related to Kuwaiti labour force, Kuwaiti females and private companies. Multivariate statistical techniques such as discriminant analysis, factor analysis, probit-logit regression analysis and multiple regression analysis are applied to collected data. The results of factor analysis, using the principal component method and varimax rotation, reduce the large number of variables that motivate Kuwaiti citizens to prefer employment in the Government Sector to four factors: job suitability, job prospects and convenience, job security and, most importantly, the level of wages offered by the Government compared to that offered by the private sector. The canonical discriminant functions evaluated at group means (group centroid) suggest that small firms who do not employ nationals are concerned mainly about the wage levels these employees wish to receive. These firms believe that nationals ask for much higher wages than expatriates. Medium-sized employers are not eager to employ nationals for fear that they will not be satisfied with the offered positions and may not stay in employment for long periods. Large employers who elect to employ expatriates rather than nationals do so because they believe that nationals do not possess the necessary qualifications and experience for the positions they wish to occupy. Discriminant analysis of survey results suggest that the probability that a Kuwaiti woman will join the labour force grows the higher the wage rate, the more educated the woman, the more suitable jobs are available and the easier it is to get domestic help. Participation of Kuwaiti women in the labour force is negatively related to marital status, family income and number of children under the age of six. The prevailing wage rate is the most influential factor affecting Kuwaiti women participation in the labour force, whether they are married or unmarried. The second most important factor influencing Kuwaiti women’s decision to participate in the labour force is education. While age seems to be the third most important factor that positively influences Kuwaiti unmarried women’s decision to participate in the labour force, the age factor does not seem to be as significant for married women. Availability of suitable jobs is the third most significant factor in positively influencing Kuwaiti married women to participate in the labour force. This factor does not seem to exert such a great influence on unmarried women. Many Kuwaiti women, particularly if married, indicate that they would prefer to work part-time (i.e. for some part of the day or for only a few days a week) or engage in home-based employment (e.g. caring for others’ young children, tailoring, manufacturing simple products, selling over the phone or internet). The family income has a much higher (negative) effect on the participation rate for married than unmarried Kuwaiti women. Married women are less likely to participate in the labour force if they have children of preschool age. Both the logit and probit regression models gave a good fit. The econometric results suggest that the longer the Kuwaiti citizen is unemployed, the higher the probability that he or she will accept employment in the private sector. On the other hand, the higher the level of education or the average family income, the lower the probability that a person will look for jobs in the private sector. Age does not seem to have any significant impact on the decision to accept employment in the private sector. There is no clear distinction in the attitudes of unemployed Kuwaiti citizens of different ages towards accepting jobs in the Government or the private sector. Sex is a significant factor, however: Kuwaiti females are reluctant to work in the private sector, and the probability that unemployed female Kuwaiti citizens will join the private sector is lower than the probability that a male Kuwaiti unemployed citizen will do so. Unemployed Kuwaiti citizens who enjoy a relatively high family income are more likely to search for jobs in the Government sector where current terms and conditions of employment are much more lucrative, and are prepared to wait for lengthy periods until offered employment in the Government sector. / Doctor of Philosophy (PhD)
| Identifer | oai:union.ndltd.org:ADTP/273613 |
| Date | January 2009 |
| Creators | Al-Rashidi, Hamed Ali H., University of Western Sydney, College of Business, School of Economics and Finance |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
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