**6. Empirical results**

**Table 3** provides the 2007–2017 period average for the model variables. The table shows four interesting observations. First, Qatar and the UAE have the strongest pay-productivity links, as indicated by their scores. Second, Saudi Arabia and Oman have the highest level of fiscal expenditures relative to GDP. Yet they have the highest youth unemployment rates. Third, more than three quarters of the GCC population live in urban areas. Finally, the GDP per capita growth rates are negative for Kuwait, Oman, Qatar, and UAE.

The correlation between the different variables reveals interesting initial relationships, as **Table 4** shows. *PP* is negatively and statistically correlated with the total and male youth unemployment rates.18 Government expenditures, *GFINANCE*, are positively correlated with all youth unemployment rates, while the degree of urbanization, *URBAN*, is negatively correlated with them all. The correlation between the GDP per capita growth rate, *GROWTH*, and the different youth unemployment rates is very low.


#### **Table 3.**

*Empirical model variables (2007–2017; period averages).*

<sup>18</sup> Pairwise correlated at the 5 percent statistical significance level.

*Youth Unemployment and Productivity-Pay in the GCC Countries DOI: http://dx.doi.org/10.5772/intechopen.99975*


#### **Table 4.**

*Correlation matrix.*
