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Mutually Beneficial Opportunities for Syrians and Host Countries in Middle Eastern Labor Markets

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Mutually Beneficial Opportunities for Syrians and Host Countries in Middle Eastern Labor Markets Opportunities for All Mutually Beneficial Opportunities for Syrians and Host Countries in Middle Eastern Labor Markets Krishna B. Kumar, Shelly Culbertson, Louay Constant, Shanthi Nataraj, Fatih Unlu, Kathryn E. Bouskill, Joy S. Moini, Katherine Costello, Gursel Rafig oglu Aliyev, Fadia Afashe C O R P O R A T I O N For more information on this publication, visit www.rand.org/t/RR2653 Library of Congress Cataloging-in-Publication Data is available for this publication. ISBN: 978-1-9774-0113-7 Published by the RAND Corporation, Santa Monica, Calif. © Copyright 2018 RAND Corporation R® is a registered trademark. Cover: Jordan manufacturing sector; ©ILO/Abdel Hameed Al Nasier (October 2018). Limited Print and Electronic Distribution Rights This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited. Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial use. For information on reprint and linking permissions, please visit www.rand.org/pubs/permissions. The RAND Corporation is a research organization that develops solutions to public policy challenges to help make communities throughout the world safer and more secure, healthier and more prosperous. RAND is nonprofit, nonpartisan, and committed to the public interest. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. Support RAND Make a tax-deductible charitable contribution at www.rand.org/giving/contribute www.rand.org Preface The Syrian Civil War has displaced 60 percent of its 23 million population, with 5.6 million Syrians living in neighboring Middle East countries as refugees. Turkey, Jordan, and Lebanon host the largest numbers of Syrians. The addition of large numbers of peo ple into these coun- tries has placed a severe strain on their labor markets, public- sector ser vices, and social cohesion. But this situation is not without opportunities for the Syrians to contribute to the economies of these host countries. The future prosperity and stability of the region rests on creating mutu- ally beneficial economic opportunities for Syrian refugees and host- country workers. This RAND study, funded by the Qatar Fund for Development (QFFD), builds on and complements existing work conducted by the governments of Turkey, Jordan, and Lebanon; the United Nations; and other donor governments in pursuing the goal of creation of jobs for Syrian refugees and citizens in host communities. Using in- depth interviews, focus groups, surveys of Syrian house holds, and surveys of firms, it conducts an analy sis of existing skill sets of the Syrian refugees in Turkey, Lebanon, and Jordan (“supply”), the needs of private sector companies (“demand”), the steps needed to match the supply and demand, the changes needed to improve the overall economic climate, and strategies for improving social cohesion of refu- gees and host communities. The study provides recommendations for its primary intended audience of the host- country governments, donor countries, and multilateral agencies in devising practical policies to help refugees find economic opportunities in host communities and to help host communi- ties minimize disruption to local residents while assuring overall economic development. We also aim to make this report accessible to general readers who may be interested in the Syrian refugee situation in the Middle East and in pos si ble solutions to provide Syrian refugees with livelihood opportunities. This study was undertaken by RAND Education and Labor, a division of the RAND Corporation that conducts research on early childhood through postsecondary education pro- grams, workforce development, and programs and policies affecting workers, entrepreneur- ship, financial literacy, and decisionmaking. Krishna B. Kumar, a se nior economist at RAND, is the principal investigator of this study, and Shelly Culbertson, a se nior policy researcher at RAND, is the coprincipal investigator. Dr. Kumar may be reached via email at [email protected] or by phone at 310-393-0411 x7589. Ms. Culbertson may be reached via email at [email protected] or by phone at 412-683-2300 x4666. More information about RAND is available on our website: http://www.rand.org. iii Contents Preface ........................................................................................................... iii Figures ........................................................................................................... ix Tables ...........................................................................................................xiii Summary ........................................................................................................xv Acknowl edgments ......................................................................................... xxxix Abbreviations ...................................................................................................xli CHAPTER ONE Introduction ..................................................................................................... 1 Background and Purpose ....................................................................................... 1 Organ ization of This Report ................................................................................... 3 CHAPTER TWO Methodology .................................................................................................... 5 Qualitative Methods ............................................................................................. 5 Quantitative Methods ........................................................................................... 8 Methodological Limitations ...................................................................................10 CHAPTER THREE An Overview of the Situation in Turkey ..................................................................13 Syrian Circumstances in Turkey ..............................................................................13 Turkey’s Economic Climate and Impact of the Syrians ....................................................16 Policies and Programs ..........................................................................................19 Social Cohesion ................................................................................................ 22 Summary ........................................................................................................ 23 CHAPTER FOUR Focus Groups in Turkey ......................................................................................25 Employment Opportunities .................................................................................. 26 The Experience of Obtaining a Job .......................................................................... 26 Employer Considerations for Hiring Syrians and Mi grants .............................................. 28 Perceptions of the Le gal Framework and Work Permits ................................................... 28 Skills and Training ..............................................................................................29 Social Cohesion Related to Employment.....................................................................29 v vi Opportunities for All Work Environment Conditions .............................................................................. 30 Aspirations and Solutions ......................................................................................31 CHAPTER FIVE Survey Results: Turkey .......................................................................................33 House hold Survey ...............................................................................................33 Firm Survey ..................................................................................................... 42 CHAPTER SIX An Overview of the Situation in Jordan ...................................................................51 Syrian Refugee Circumstances in Jordan ....................................................................51 Jordan’s Economic Climate and Impact of the Refugees .................................................. 54 Policies and Programs ..........................................................................................58 Social Cohesion ................................................................................................ 60 Summary .........................................................................................................61 CHAPTER SEVEN Focus Groups in Jordan ......................................................................................63 Employment Opportunities .................................................................................. 64 The Experience of Obtaining a Job .......................................................................... 64 Employer Considerations for Hiring Syrians and Mi grants ...............................................65 Perceptions of the Le gal Framework and Work Permits ................................................... 66 Skills and Training ..............................................................................................67 Social Cohesion Related to Employment.....................................................................67
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