The labor market integration of Syrian refugees in Turkey

Abstract

Although Turkey hosts the largest population of refugees globally, we know little about their labor-market outcomes at the national level. This study uses the 2018 round of the Turkey Demographic and Health Survey, which includes a representative sample of Syrian refugees for the first time, to examine refugee labor-market integration. The findings show a much smaller native–refugee gap in men’s employment in Turkey (favoring natives) than that reported for most developed countries. Moreover, the employment rate for refugee men peaks quite early, one year after arrival, and remains at the same level. By contrast, the employment rate for refugee women is initially lower and does not change much over time. Once demographic and educational differences are accounted for, the native–refugee gap in men’s (women’s) paid employment falls to 4.7 (4.0) percentage points (pp). These small gaps conceal the fact that formal-employment rates are much lower among refugees. Even when covariate differences are accounted for, the formal-employment rate for refugee men is 58 pp lower than the rate for native men. In addition, the smallest native–refugee employment gaps are in manufacturing for men and agriculture for women. The gap is also much smaller in wage employment than in self-employment or unpaid family work. Finally, significant heterogeneity exists across refugee groups. The native–refugee employment gap is wider for older and more-educated groups. Once covariates are accounted for, the gap in men’s employment vanishes for refugees whose mother tongue is Turkish but persists for refugees whose mother tongue is Arabic or Kurdish.