Ethnic identity and economic welfare

•We derive an ethnosizer scale to grasp the ethnic identities of refugees in Istanbul.•We analyze how their ethnic identity affects the economic welfare of the refugees.•Ethnic identity and discrimination are crucial for the outcomes in labor markets.•We find that ethnic identity-related variables a...

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Bibliographic Details
Published in:Economic systems 2021-09, Vol.45 (3), p.100888, Article 100888
Main Authors: Bağçe, Sinem, Yılmaz, Ensar, Kılıç, İbrahim Engin
Format: Article
Language:English
Subjects:
Ethnic identity
Ethnosizer
Refugees
Wage gap
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Summary:•We derive an ethnosizer scale to grasp the ethnic identities of refugees in Istanbul.•We analyze how their ethnic identity affects the economic welfare of the refugees.•Ethnic identity and discrimination are crucial for the outcomes in labor markets.•We find that ethnic identity-related variables and human capital affect the wage gap. In this study, we use rich survey data to understand the determinants of labor market success across refugees of different ethnicities in Turkey. In particular, we examine individual personality traits and integration barriers by considering metrics of refugees’ proximity to Turkey based on their home countries’ levels of cultural distance. Using microdata, we derive a refined index called ethnosizer scale to grasp the distance of minor ethnic identities in Istanbul to the dominant identity. Utilizing this parameter, we aim to analyze how the degree of commitment to the local society’s culture affects the economic welfare of refugees in Istanbul, in terms of their earnings, participation in labor markets and wage gap compared to the natives.
ISSN:0939-3625
1878-5433
DOI:10.1016/j.ecosys.2021.100888