Can Hiring Quotas Work? The Effect of the Nitaqat Program on the Saudi Private Sector

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2017
Volume: 9
Issue: 2
Pages: 316-47

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies the effects of quota-based labor regulations on firms in the context of Saudi Arabia's Nitaqat program, which imposed quotas for Saudi hiring at private firms. I use a comprehensive firm-level administrative dataset and exploit kinks in hiring incentives generated by the quotas to estimate the effects of this policy. I find that the program increased native employment at substantial cost to firms, as demonstrated by increasing exit rates and decreasing total employment at surviving firms. Firms without any Saudi employees at the onset of the program appear to bear most of these costs.

Technical Details

RePEc Handle
repec:aea:aejpol:v:9:y:2017:i:2:p:316-47
Journal Field
General
Author Count
1
Added to Database
2026-01-29