Syrian Workers and Informality in the Textile Sector in Istanbul

Introduction 

In Istanbul, Syrians are employed informally in the textile, apparel, and leather industries, i.e., subsectors of the textile industry, and work under precarious conditions. Turkish firms’ strong demand for labor in these industries remains unsatiated as Turkish workers are constantly shifting toward jobs in the service sector, where the working conditions are considered to be better. Our data indicates that the vacancies in the textile industry are being filled by Syrian workers partially due to the common practice of informal employment, which is often imposed upon both Turkish and Syrian workers in this sector. Why is informality so widespread in the textile sector? Interviews with firms and business associations in this sector reveal that there are different sources at play: 

(a) A brutal global price competition; 

(b) Short production horizons imposed by international companies; 

(c) Insufficient monitoring by Turkish authorities; 

(d) The ability of firms in this sector to avoid punishment from Turkish authorities or international clothing companies. 

In this policy brief, we first introduce the data used in our analysis. After analyzing labor demand in the textile industry, we document the dire working conditions that are pushing Turkish workers out of this industry into services and argue that the conditions are even worse for Syrians who fill the gaps. Clearly, informality is one of the main explanations for the dire working conditions in this sector. Therefore, we delve deeper into the causes behind high rates of informal employment in this industry. We conclude by proposing some policies that will help ameliorate the working conditions of all workers in one of the most important industries in the Turkish economy. Such policies will serve the dual purpose of fighting informality, which has detrimental effects on Turkish and Syrian workers alike and making more efficient use of the Syrian labor force in a trench of the labor market where supply remains scant. Ultimately, these policies aim to support the textile industry, one of the most prominent exporting industries of the economy.