Daily Events

Since December 1st till March 31 you can apply to our programs:
Master in Economic Research and PhD in Economics

Entry requirements are:
- BA / MA degree or equivalent
- Proficiency in spoken and written English
- Solid background in mathematics
- Previous education in economics is recommended

Your online application must content following documents:
- Curriculum vitae
- Statement of motivation
- Copies of your diplomas and transcripts
- Proof of English proficiency level
- Contact details for two (or max. three) referees (optional for MA applicants)

For more information please see sections: How to apply to MER or How to apply to PhD
In case of any question, please do not hesitate to contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.
or see the FAQ sections for Master´s or Phd program.

Ahmet Gulek, M.A.

MIT Department of Economics, United States

Authors: Ahmet Gulek, Tishara Garg

Abstract: This paper investigates how immigration-induced wage shocks can propagate beyond the regions receiving immigrants through the production network. Using the Syrian refugee crisis in Turkey as a quasi-experiment and the near universe of domestic firm-to-firm transaction data from VAT records, we show that the immigration shock propagates both forward and backward along the supply chain. Firms in non-host regions who directly or indirectly buy from host regions demand more labor. Firms who sell to host regions weakly increase their sales. Estimates imply an elasticity of substitution between labor and intermediate goods of 0.76 and an elasticity of substitution of nearly 1 between intermediates. Counterfactual analyses show that the spillover effects on non-host regions are economically meaningful when the host regions are central nodes of the domestic trade network. For example, a 1% increase in labor supply in Istanbul decreases real wages in Istanbul by 0.56% and increases real wages in the average non-host city by 0.38%.

Full Text: Effects of Immigrants on Non-host Regions Evidence from the Syrian Refugees in Turkey