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Human Capital and Labour Force Participation in Romania a case study on Romanian Roma

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Title: Human Capital and Labour Force Participation in Romania a case study on Romanian Roma


1
Human Capital and Labour Force Participation in
Romania a case study on Romanian Roma
  • Author Ana-Maria Zamfir PhD. Candidate,
    researcher, Research Institute for Labour
    and Social Protection
  • Cristina Mocanu, PhD. Candidate, researcher,
    Research Institute for Labour and Social
    Protection

2
Structure of the presentation
  • Introduction
  • Objective of the case study. Data and limits
  • Romania at the moment of its EU Accession
    evolutions of the Human Development Index
  • Disparities in human development gaps of human
    development between Romanians and Roma
    population
  • Disparities in labour force participation
    differences in participation to the economic
    activity between Romanians and Roma population
  • Concluding remarks

3
Introduction
  • Human development paradigm looks at the wellbeing
    of the individuals and on their capacity to
    promote development
  • Human capital essential resource for a
    sustainable development process
  • Such a process can be hindered by disparities
  • Fighting against disparities is important in
    order to strengthen social inclusion and support
    social development
  • Employment is one of the most important paths to
    prevent marginalization and social exclusion
  • Investigating human capital as major determinant
    of employability is important for
  • A better knowledge of causes and forms of
    marginalization
  • A better focus of the actions and policies for
    fighting against exclusion
  • For several years, Romania has embraced the
    European goals and developed its institutions and
    legal framework in order to increase social
    inclusion for all citizens and fight against
    discrimination

4
Objective of the case study
  • Roma population is one of the most disadvantaged
    and discriminated groups of Romania and European
    Union, being associated with high risk of poverty
    and social exclusion
  • Roma population is characterized by low
    participation with respect to most of the social
    structures/mechanisms - marginalization
  • Lots of studies have underlined the existence of
    an exclusion trap or a vicious circle
    generated by poverty, lack of identity papers,
    low education/qualification, poor health, low
    access to public services and dwellings,
    attitudes and acts of discrimination and ethnic
    segregation
  • Insufficient capacity of the governments to
    address Roma issues in an efficient manner - for
    increasing their participation and wellbeing
  • Objective to analyze Romanian Romas
    participation to the labour market
  • and its determinants
  • The background idea belonging to Roma group
    affects human capital development which determine
    low employability.
  • Poor human and social capital embed all the
    elements that inter-correlate and define Romas
    dependency trap

5
Data and limits
  • Sources of data
  • Romanian National Institute of Statistics -
    Census of Population and Dwellings, 2002 only
    official source of data which includes ethnic
    breakdowns
  • Soros Foundation Romania Roma Inclusion
    Barometer, 2006
  • Data base of the national survey on Roma
    population carried out for the Regional Report
    Roma in Central and Eastern Europe, UNDP, 2001
  • National Human Development Report Romania,
    2007, UNDP
  • Multiple Discrimination in Romania, 2007,
    National Research Institute for Labour and Social
    Protection
  • Limits of the study
  • Unfortunately, reliable data on Roma are rather
    old, except for the ones coming from the Roma
    Inclusion Barometer which dont include
    employment data
  • Low rate of Roma declaring their ethnic identity

6
Romania at the moment of its EU Accession (1)
  • Global Human Development Report, 2006 Romania
    has finally joined the group of countries with
    high HDI (2005 0.808 index points)
  • Unfortunately, Romania still holds the last
    position among the EU countries
  • However, HDI registers an upward trend as it rose
    since 1995 continuously, with a more accelerated
    pace since 2000
  • - 1990-1995 Romania alongside with Bulgaria
    experienced a decline in HDI, while all European
    countries gained human capital
  • - 1995-2000 EU10 registered a significant
    increase of HDI, higher than EU15 Romania joined
    the positive trend
  • - After 2000 the trend flattened for EU15 and
    EU10, while Romania displays a solid increase of
    its HDI

Source Human Development Report, 2006
7
Romania at the moment of its EU Accession (2)
  • Analyzing HDI by components, we discover that
    Romania is not very far to EU25 average with
    respect to Education Index
  • Romania registers significant deficits in life
    expectancy and GDP index
  • Life expectancy index for Romania measures 0.1
    points lower than EU25 average which means that
    Romanians live, in average, with six years less
  • Still, Romania registers its most important gap
    in the case of GDP index

Source Human Development Report, 2006
8
Romania at the moment of its EU Accession (3)
  • The most important determinant of the HDI
    increase lies in the GDP Index growth due to the
    economic development of the country (in 2007,
    Romania achieved eight consecutive years of
    economic growth)
  • except for 2003, the life expectancy index also
    presents an upward trend
  • The Education Index contributes to the HDI
    increase in the smallest extend. Its increase is
    determined by the improved participation to
    tertiary education. The adult literacy rate
    registered a slow increase

Source Human Development Report, 2006
9
Disparities in human development (1)
  • Regional Report Roma in Central and Eastern
    Europe (UNDP, 2001) offers an estimation of HDI
    and its components for Romanian Roma (2000) -
    Roma reached a value of 0.57 in 2000
  • Roma population registers a significant deficit
    of human development
  • It proves that Roma represents one of the most
    vulnerable groups from Romania and Europe as they
    have low capacity to access opportunities and
    generate development

Source National Human Development Report 2007
and Regional Report Roma in Central and Eastern
Europe, UNDP, 2001
10
Disparities in human development (2)
  • For all the components of HDI, Roma population
    registers significant gaps as against the values
    of Romania
  • Estimations indicate a GDP per capita for Roma of
    around 1/3 of the national average
  • Low level of the Life Expectancy Index for Roma
    highlights poor health of Roma
  • - Life expectancy at birth for Roma is estimated
    on the ground of their juvenile mortality rate
    which is three times higher than the national
    average
  • Roma life expectancy reaches 63-64 years as
    against the national average of 70.5 years (2000)

  • The highest deficit appears in relation with the
    Education Index
  • - Romania registers an adult literacy rate of
    97, while Roma has no more than 72
  • - Gross enrollment ratio for Romania measures
    66.5 in comparison with just 35 for Roma

Source National Human Development Report 2007
and Regional Report Roma in Central and Eastern
Europe, UNDP, 2001
11
Disparities in human development (3)
  • Most of them (34) have no school, while 30
    graduated just primary education
  • Therefore, more than 60 of Roma doesnt graduate
    compulsory education
  • Equal shares of Romanians and Roma graduated
    secondary education
  • Roma are underrepresented within higher education
    categories
  • - Roma have low education level which reduces
    significant their employability as they have no
    or low qualification

Source Romanian National Institute for
Statistics, Census of Population and Dwellings,
2002
12
Disparities in human development (4)
  • Data broken down by sex indicate that Roma women
    have lower levels of education
  • They exceed with more than 10 the share of Roma
    men with no school
  • Also, they are underrepresented within all the
    other categories of education
  • It proves that their access to education is even
    more reduced
  • Therefore, Roma and especially Roma women have
    access to employment requesting low qualification
    level which is often associated with poor payment
    and working conditions

Source Romanian National Institute for
Statistics, Census of Population and Dwellings,
2002
13
Disparities in labour force participation (1)
  • Roma are overrepresented within unemployed and
    economically inactive population and
    underrepresented with respect to employed
    population
  • Just a quarter of Roma aged 15 and over are
    employed
  • Data broken down by sex show that just 16 of
    Roma women are employed and 5 are unemployed
  • Therefore, 80 of them are economically inactive
    population which means a low level of social
    security
  • Roma men are characterized by a higher share of
    employed (36) which is still low as against the
    share of employed Romanian men (52)

Source Romanian National Institute for
Statistics, Census of Population and Dwellings,
2002
14
Disparities in labour force participation (2)
  • most of Roma unemployed have never worked as they
    are looking for their first job
  • In fact, 64 of them have no working experience
    as against 37 of Romanians
  • Romanian men and women display similar shares of
    unemployed looking for their first job, while
    Roma women are characterised by lack of working
    experience in a higher share in comparison with
    Roma men
  • These figures prove that Roma women
    participation on the labour market is rather
    marginal

Source Romanian National Institute for
Statistics, Census of Population and Dwellings,
2002
15
Disparities in labour force participation (3)
  • the share of Roma pensioners is three times lower
    than the one of Romanians as they have poor
    working experience and a lower life expectancy at
    birth
  • Due to employment differences between Roma men
    and women, the share of Roma women pensioners is
    lower than the one of mens - thus, only 12 of
    economically inactive Roma women are pensioners
  • the share of Roma house wives is two times higher
    than the one of Romanian women
  • 15 of them are dependent by others or by state
    as against just 4 of Romanians
  • almost half of the Roma economically inactive men
    find themselves within the other category which
    signifies no income or undeclared work
  • low share of Roma students which is five times
    lower than the one of Romanians

Source Romanian National Institute for
Statistics, Census of Population and Dwellings,
2002
16
Disparities in labour force participation (4)
  • poor presence of Roma within first five groups of
    occupations which are associated with higher
    level of education and qualification
  • Also, Roma are overrepresented within groups of
    farmers and skilled workers in agriculture, as
    well as unskilled workers due to their low
    education level and large share of Roma with no
    school
  • Roma work mainly in agriculture and construction
    in low skilled and unskilled positions
  • Roma women are employed in agriculture in high
    shares, while men display a larger share of
    handicraftsmen and artisans due to their higher
    level of education and traditional Roma
    occupations

Source Romanian National Institute for
Statistics, Census of Population and Dwellings,
2002
17
Disparities in labour force participation (5)
  • 30 of Roma declare that occasional undeclared
    work represents their main source of income
  • Moreover, 2.5 carries out regular undeclared
    work for living
  • These figures show how marginal and poor the Roma
    participation to the labour market is
  • For 13 of Roma, child support money represents
    the main income of the household
  • Therefore, only 12 of Roma earn their living
    mainly through regular declared work.

Source representative survey on Roma, UNDP, 2001
18
Disparities in labour force participation (6)
  • 80 of Roma declare that they had difficulties in
    finding a job - it proves their low
    employability, as well as existence of
    discrimination on labour market
  • In fact, more than half of Roma considers that
    their ethnic identity represents an obstacle for
    them in finding a job
  • poor human capital increases the risk of
    discrimination and Roma are one of the most
    disadvantaged and discriminated groups in
    Romania
  • Recent data indicate that 77 of population
    perceive that Roma are discriminated in accessing
    a job, while 70 think that Roma are
    discriminated at their work place - with respect
    to advancement in career, access to vocational
    training (Source Romanian National Research
    Institute for Labour and Social Protection, 2007)

19
Concluding remarks
  • Romanian Roma are characterized by poor human
    development and social participation which means
    low access to education, employment and social
    security systems
  • In fact, Roma participation on the labour market
    is rather marginal as they display low employment
    rate, high rate of undeclared work, high share of
    employed population working in unskilled or low
    skilled occupations, as well as increasing flows
    of irregular migration for employment abroad
  • Also, Roma are characterized by passivity and
    lack of confidence in the public institutions.
    Till now, most efficient actions of the
    authorities have been the ones connecting social
    benefits with important elements of social
    participation such as participation to education
    (for children) and to employment active
    programmes (for adults)
  • Therefore, social policies need to be coupled
    with active measures and with positive actions
    (discrimination) designed to increase Roma
    capabilities in order to promote sustainable
    human development.
  • First of all, actions need to be targeted on the
    improvement of access to education. It will
    improve Romas access to employment and other
    social opportunities.
  • Also, awareness raising campaigns for the public
    services personnel, social partners, mass media
    and entire population have to be developed
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