Gulf states are trying to increase private employment

BY NOW GULFUAEGDP rulers have tried almost everything. For much of the region’s modern history well-paid government jobs have been a birthright for citizens. This perk forms the core of the region’s social contracts: cushy, lucrative employment in exchange for the deprivation of political rights. Worried about growing populations and uncertain oil revenues, though, Gulf states have spent the past two decades trying to persuade and prod their pampered subjects to work for privately owned firms. It has been a real-world experiment in economics—and a largely unsuccessful one at that.In September the United Arab Emirates () announced its latest attempt, a programme that will cost 5bn dirhams ($1.3bn) a year (0.3% of ). At its core are wage subsidies of up to 8,000 dirhams a month for the first year and up to 5,000 dirhams a month for the next five years, for citizens who take private jobs.