Relative Income and Perception of Syrian Refugees on the Basis of Economic Rights

Abstract

Easterlin (2001) states that increasing income does not lead to greater happiness because people compare themselves to others (social comparison) or adjust the increase in income (adaptation). We apply the relative income hypothesis to Syrian refugees' perceptions of their economic conditions, not their happiness. To answer the question "Does relative income matter in Syrian refugees' perceptions of economic conditions?" we regress Syrian refugees' perceptions of various economic rights on relative income by using data collected in Istanbul, Hatay, Gaziantep, and other cities. The OLS estimation results show that an increase in Syrians' income makes them more likely to believe perceptions of discrimination in applying for jobs, while an increase in Syrians' income as a share of the GDP of the city in which they live makes them more likely to have perceptions of less discrimination in applying for jobs. Other results show that an increase in relative income leads them to perceive that they have more difficulty finding a job because of their nationality. Moreover, an increase in relative income leads them to believe less likely to do jobs that the local do not want to do. Regarding low pay, an increase in relative income leads them to believe that they are paid less than the local. The results suggest that when policies achieve more equality between the local and Syrians in labor markets, Syrian refugees change their perceptions, which leads them to be more effective in the labor market.