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Original Research Article
Analysis of the minimum wage: A mathematical model for the private sector in Saudi Arabia
Ahmed Almohaimeed
College of Business Administration, King Saud University, P.O. Box 71115 Riyadh 11587,Saudi Arabia
Author’s Email almohaimeed.ksu(at)gmail.com
Tel.:+966500400420
Article Number: | Pages: | | DOI:
Received: August 23, 2016 Accepted: October 31, 2016 Published: November 15, 2016
Abstract
This research examines successively the criteria related to the needs of Saudi workers and their families, and then the criteria of Saudi economic nature taken into account when determining minimum wage levels such as poverty line variables, average wage and productivity, the consumer price index, and average employment. According to these criteria’s, the private sector minimum wage in Saudi Arabia should be SR 4,745, which is higher than the current minimum wage and falls within the subsistence level.
Keywords: minimum wage, employment, private sector