Modeling Sectoral Employment in Saudi Arabia

Achieving the desired level of employment is central to macroeconomic policy. Regulators should have a better understanding of employment dynamics in order to design appropriate policies and test their impact. Healthy employment levels not only benefit household income and the production factor of firms, but also help maintain sustainable economic growth and reduce poverty. Employment is a central element in the concept of inclusive growth (UN 2006; Bhalla 2007). Therefore, the dynamics of employment determinants have been the subject of considerable research to date.