Multiple faces of labour market segmentation within the Turkish construction industry

Abstract

This study explores labour market segmentation within the Turkish construction industry, in a developing country context characterised by refugee influxes and heightened earthquake risks. We apply statistical and regression analyses using 2002–2020 Household Labour Force Survey data to explore segmentation with a specific focus on payment, job type and social security enrolment. The findings reveal a segmented labour market where the progress in regular, permanent and registered employment in the 2000s failed to encompass most construction workers. Lower wages, and temporary and unregistered work are more common among the youngest and oldest workers, those with poor education and qualification levels, immigrants, and those employed by micro enterprises. The construction industry lags behind both manufacturing and services in terms of registered and permanent employment rates and average wages. The prevalence of workers in elementary jobs with little education highlights the ongoing challenge of ensuring a highly skilled workforce, while reconstruction activities in earthquake-prone zones and the demand for urban transformation in Türkiye are increasing. We argue that improvements in working conditions constitute an urgent restructuring component in the sector for elevating the status of construction jobs, addressing the shortage of skilled labour and ensuring a high-quality building stock that upholds the right to a secure life in Türkiye.