Events

This article examines the effects of large inflows of refugees resulting from violence in Syria on firms' behavior in Turkey, an economy that contains a large informal sector, as is commonly  observed in developing countries. To identify causal effects, we exploit the fact that refugees tend to migrate to areas with early settlements of individuals from their origin locations (as measured by the proportion of population speaking Arab in each province). We find that refugee inflows have positive effects on the sales and gross output of formal firms. We also find that wages are positively impacted by refugees inflows.