The labor market integration of Syrian refugees in Turkey

Murat Demirci and Murat Güray Kırdar

World Development, Volume 162 (2023), Article 106138 

https://doi.org/10.1016/j.worlddev.2022.106138 

Review

This paper examines the labor market integration of Syrian refugees in Turkey, drawing on data from the 2018 Turkey Demographic and Health Survey (TDHS)—the first nationally representative sample of Syrian refugees in Turkey. Since 2018, Syrian refugees in Turkey have numbered more than 3.6 million. The study compares employment outcomes between Syrian refugees and native Turks, identifies factors influencing integration, and highlights subgroups facing particular challenges. 

The authors use a linear probability model to estimate the impact of refugee status on various labor market outcomes, controlling for demographic and educational differences. They further analyze how integration varies by age, education, duration of residence, mother tongue, and region. 

The analysis draws on data from the 2018 Turkey Demographic and Health Survey (TDHS), which includes a representative sample of Syrian refugees in Turkey for the first time. The TDHS provides detailed information on employment status, job type and sector, and whether employment is formal or informal for both natives and refugees. Descriptive statistics reveal that: 

  • Syrian refugees are, on average, younger and less educated than native Turks. They are more likely to reside in southern and southeastern provinces, where employment rates are generally lower. The average duration of residence for Syrian refugees is 3.8 years. 
  • Employment rates are higher among natives (69 percent of men, 22 percent of women) compared to Syrian refugees (62 percent of men, 6 percent of women).  
  • Refugee men are more likely to be employed as wage workers (88 percent) compared to native men (73 percent). Refugee men are more concentrated in manufacturing, while native men are more likely to work in services. Among women, refugees are more likely to work in agriculture and less likely to work in services compared to natives. 
  • Refugees are overwhelmingly employed in the informal sector (98 percent of married men, 98 percent of women), compared to much lower rates among natives (19 percent of married men, 38 percent of women).  

Main empirical results: 

  • Overall employment levels are not much lower for refugees than for natives. Gaps in labor market outcomes (employment, unemployment, and labor-force participation) between natives and Syrian refugees in Turkey narrow considerably (especially for women) once differences in demographic and educational characteristics of natives and refugees are accounted for. For men, the native-refugee gap in paid employment drops from 7.1 percentage points to 4.7 points after controls; for women, it narrows from 16.1 to 4.0 points. This suggests that much of the observed gap is explained by differences in age and education. 
  • Syrian refugees in Turkey lag natives in terms of employment quality. Gaps in job characteristics persist and display significant heterogeneity, even after differences in demographic and educational characteristics of natives and refugees are accounted for. Refugees are significantly less likely to be employed in most types and sectors of jobs, with the gap being smallest in wage employment, manufacturing for men, and agriculture for women; and larger gaps in self-employment and unpaid family work.  
  • Refugees are much more likely to work in the informal sector. Even after controlling for demographic and educational factors, married refugee men are 58 percentage points less likely to be formally employed than married native men. 
  • Labor market integration varies significantly by age, education, language, and region. Young refugees (under 25) have higher employment rates than native youth, who are more likely to be in education, but refugees’ employment rates lag behind natives among older age groups. The employment gap is wider for more educated refugees, especially women. Language proficiency is crucial for men’s employment, with Turkish-speaking refugees faring better than Arabic- or Kurdish-speaking refugees. Regional differences also matter: refugee men do better in regions with manufacturing jobs, while refugee women are more likely to find work in regions with agricultural opportunities. 

The study finds that the gap in men’s employment between natives and refugees in Turkey is much smaller than in most developed countries. However, these small gaps mask the fact that refugees are much more likely to work in informal, lower-quality jobs, with lower wages and greater job insecurity. Educated individuals, older refugees, and women face greater challenges in labor market integration. Language skills and access to formal employment opportunities are key factors for improving integration outcomes.