Three essays on immigrant workers in Kuwait

Abstract

This thesis explores how labour and immigration policies afect immigrant workers in Kuwait, a labour market heavily reliant on foreign workers. It presents three empirical studies using rich microdata and causal inference methods to examine employment, wage, and remittance outcomes. The frst study study investigates wage diferentials between natives and immigrants by nationality and skill levels. Using Blinder-Oaxaca (BO) decomposition, the Brown, Moon, and Zoloth (BMZ) model, and Nopo non-parametric matching approach, it shows that a substantial portion of wage gaps cannot be explained by observable characteristics which highlights a potential structural discrimination and unequal treatment in the labour market. The second evaluates the efects of Employment Protection Legislation (EPL) introduced in the private sector. Applying a Diference-in-Diferences (DiD) approach, it fnds that while EPL increased employment, it simultaneously reduced real wages. This reveals a critical trade-of between job security and wage outcomes for migrant workers. The third study examines the family reunion policy that introduced a minimum income threshold for family reunifcation. Using Regression Discontinuity Design (RDD) and Diference-in-Discontinuity (Dif-in-Disc) method, it shows that restricting family reunifcation signifcantly increased remittances among low-skilled immigrants, suggesting behavioural adaptation to policy constraints. Together, these fndings ofer new evidence on the unintended consequences and equity challenges of labour regulation in migrant-dependent economies. They underscore the need for policies that balance protection with fairness, account for behavioural responses, and address underlying structural inequalities.

More information

Identifiers

ORCID for Reem Mohammed Alhajji: orcid.org/0000-0003-0580-7842

ORCID for Jackie Wahba: orcid.org/0000-0002-0002-3443

Catalogue record

Export record