The Relative Economic Progress of Male Foreign Workers in Kuwait

Abstract

A human capital framework is utilized to examine the economic progress of nine nationality groups of foreign workers using data from the 1983 national Labor Survey. The sources of earnings’ variations of particular interest to us included different degrees of education and experience transferability, occupational affiliation and ethnic background. In general, the results derived from the analysis suggest that 1) foreign workers achieve a discernible economic progress as their residence lengthens; 2) the rate of economic progress varies depending on worker's education, home and Kuwait-specific experience, occupational status and ethnic background; and 3) about one third of the earnings inequality is due to unexplained factors including discrimination.