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Labor Markets in the Gulf and the South Asian Migration

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South Asian Migration in the Gulf

Abstract

This chapter considers the long-run relationship between South Asian labor and the Gulf Cooperation Council (GCC)’s workforce composition and modes of operation. While overall the relationship has been mutually beneficial, drawbacks are apparent, a key one being the impact on indigenous human capital. South Asian labor, more than any other contingent—Arab, Western and others—enabled GCC rulers to institute a mode of ‘social contract’ which provided citizens with government jobs (sometimes sinecures), luxury lifestyles facilitated by cheap labor (within the domestic workplace and public spheres), and heavily subsidized migrant labor for their business ventures. The resultant strains—a highly overstaffed bureaucracy and little incentive for businesses to invest in labor-saving technologies—are now acutely apparent and the status quo is in need of a systemic overhaul.

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Author information

Authors and Affiliations

  1. Department of Economics and Finance, College of Business and Economics, United Arab Emirates University, Al-Ain, UAE

    Emilie J. Rutledge

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  1. Emilie J. Rutledge
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Editors and Affiliations

  1. Department of Accounting, Finance and Economics, Business School, Bournemouth University, Bournemouth, United Kingdom

    Mehdi Chowdhury

  2. Centre for Development Studies, Thiruvananthapuram, Kerala, India

    S. Irudaya Rajan

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Rutledge, E.J. (2018). Labor Markets in the Gulf and the South Asian Migration. In: Chowdhury, M., Irudaya Rajan, S. (eds) South Asian Migration in the Gulf. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-71821-7_6

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  • DOI: https://doi.org/10.1007/978-3-319-71821-7_6

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-71820-0

  • Online ISBN: 978-3-319-71821-7

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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