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Diversity and wage inequality in the UAE labor market

 

Qingxia Tong1*, Mouawiya Al Awad2*

 

Research Article | Published September 2014

Journal of Economics and International Business Management, Vol. 2(3), pp. 59-72

 

1Research Institute of Economics and Management, Southwestern University of Finance and Economics, P. R. China.
2
Institute for Social and Economic Research, Zayed University, PO Box 19282, Knowledge Village, Dubai, UAE.

 

*Corresponding author. E-mail: mouawiya.alawad@zu.ac.ae

 

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The rapid increases in the international migratory flows of workers are poised to play an important part in reducing global inequalities by shortening the gaps in salaries and incomes of comparable workers from different countries. This paper presents a different case in which a workforce comprising almost entirely of migrant workers in the private sector has maintained the high wage inequalities. Using labor records in the United Arab Emirates, we find that labor force diversity in the UAE comes at a price of high wage inequalities, and that a labor market full of migrant workers is unable to reduce inequalities on its own.

 

Keywords: Wage inequality, diversity, UAE, migrant workers, globalization, labor market.

 

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Citation:
Tong Q , Al Awad M (2014). Diversity and wage inequality in the UAE labor market. J. Econ. Int. Bus. Manage. 2(3): 59-72.
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