Economic Research Forum (ERF)

Steffen Hertog

Author

Steffen Hertog
Associate Professor of Comparative Politics, London School of Economics and Political Science.

Steffen Hertog is an associate professor of comparative politics at the London School of Economics and Political Science. His research interests include Middle East and Gulf political economy, political violence and radicalization. Over the last 15 years, he has undertaken a wide range of public policy work in the MENA region on issues like labor market and migration reform, public sector governance and economic diversification, working with institutions like the World Bank, the ILO, the OECD, and ESCWA. His book about Saudi state-building, “Princes, Brokers and Bureaucrats: Oil and State in Saudi Arabia” was published by Cornell University Press in 2011. He is the co-author, with Diego Gambetta, of “Engineers of Jihad: the Curious Connection between Violent Extremism and Education” (with Princeton University Press 2016) ) and has most recently published a short monograph entitled “Locked Out of Development: Insiders and Outsiders in Arab Capitalism” (Cambridge University Press 2023).

Content by this Author

Insiders and outsiders: the political economy of Arab labour markets

Labour markets across much of the Arab region are split into two parts – they are dualistic. On one side, there are public sector workers who, while not paid handsomely, are protected from reform by incumbent governments desperate to secure middle class support. This insider group contrasts with the region’s outsiders – informally employed private sector workers and the unemployed. This column argues that outsiders are often left behind in terms of economic opportunities and outcomes, and that this hampers the overall growth potential of countries across the Arab world. Yet political feedback loops keep regimes from improving welfare and economic opportunities for outsiders.

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A Macroeconomic Accounting of Unemployment in Jordan:  Unemployment is mainly an issue for adults and men

Since unemployment rates in Jordan are higher among young people and women than other groups, unemployment is commonly characterised as a youth and gender issue. However, the majority of the country’s unemployed are adults and men. This suggests that unemployment is primarily a macroeconomic issue challenge for the entire labour market. The appropriate response therefore is coordinated fiscal, monetary, structural and institutional policies, while more targeted measures can still benefit specific groups.

Global value chains and sustainable development

What is the role of exchange rate undervaluation in promoting participation in global value chains by firms in developing countries? What is the impact of the stringency of national environmental regulations on firms’ GVC participation? And how do firms’ political connections affect their participation in GVCs? These questions will be explored for the MENA region at a special session of the ERF annual conference, which takes place in Cairo in April 2025.

Adoption of decentralised solar energy: lessons from Palestinian households

The experience of Palestinian households offers a compelling case study of behavioural adaptation to energy poverty via solar water heater adoption. This column highlights the key barriers to solar energy adoption in terms of both the socio-economic status and dwellings of potential users. Policy-makers need to address these barriers to ensure a just and equitable transition, particularly for households in conflict-affected areas across the MENA region.




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