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Development level of hosting areas and the impact of refugees on natives’ labor market outcomes in Turkey☆

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  • Aracı, Doğu Tan
  • Demirci, Murat
  • Kırdar, Murat Güray

Abstract

We examine how the impact of refugees on natives’ labor market outcomes varies by the development level of hosting areas, which has important implications for the optimal allocation of refugees across regions and countries. For this purpose, in the context of the largest refugee group in the world in a single country, Syrian refugees in Turkey, we exploit the significant variation in the development level across regions of Turkey, several of which host a substantial number of refugees. We find that the impact of refugees on natives’ labor market outcomes becomes significantly less adverse as the regional development level rises. For instance, the adverse effects of the refugee shock on women's employment and labor force participation observed at the mean level of development vanish at high levels of development. Moreover, while the refugee impact on men's employment is negative for the least developed regions, it is positive for highly developed regions. Our findings imply that developed regions and countries are better positioned to protect their local population from the short-term adverse effects of refugees in the labor market.

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  • Aracı, Doğu Tan & Demirci, Murat & Kırdar, Murat Güray, 2022. "Development level of hosting areas and the impact of refugees on natives’ labor market outcomes in Turkey☆," European Economic Review, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:eecrev:v:145:y:2022:i:c:s0014292122000666
    DOI: 10.1016/j.euroecorev.2022.104132
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    Cited by:

    1. Demirci, Murat & Kırdar, Murat Güray, 2023. "The labor market integration of Syrian refugees in Turkey," World Development, Elsevier, vol. 162(C).
    2. Akgündüz, Yusuf Emre & Bağır, Yusuf Kenan & Cılasun, Seyit Mümin & Kırdar, Murat Güray, 2023. "Consequences of a massive refugee influx on firm performance and market structure," Journal of Development Economics, Elsevier, vol. 162(C).
    3. Murat Demirci, 2021. "Rising Political Populism and Outmigration of Youth as International Students," Koç University-TUSIAD Economic Research Forum Working Papers 2123, Koc University-TUSIAD Economic Research Forum.

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    More about this item

    Keywords

    Refugees; Optimal refugee allocation; Labor market impact; Development level; Employment and wages of men and women;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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