P r o c e d i a E c o n o m i c s a n d F i n a n c e 8 ( 2 0 1 4 ) 7 3 7 7 4 6 [609206]

P r o c e d i a E c o n o m i c s a n d F i n a n c e 8 ( 2 0 1 4 ) 7 3 7 – 7 4 6
2212-5671 © 2014 The Authors. Published by Elsevier B.V. Open access under CC BY-NC-ND license.
Selection and peer-review under responsibility of the Organizing Committee of ESPERA 2013
doi: 10.1016/S2212-5671(14)00152-X Available online at www.sciencedirect.com
ScienceDirect
1st International Conference 'Economic Scientific Research – Theoretical, Empirical and Practical
Approaches', ESPERA 2013
Labour mobility impact on sending countries. Romanian EU
workers case study
Valentina Vasilea*
aInstitute of National Economy-, Calea 13 Septembrie no. 13, Sector 5, 050711,Bucharest, Româ nia
Abstract
Free movement of workers is one of the four freedoms of EU law and and labour force relocation through temporary migration is
a form of efficient distribution of resources on the EU labour market. Although it is estimated that the net effects labour mobility
leads to win-win for both countries involved, the higher demand for qualified workforce and extending the average duration of
temporary mobility increases win-win imbalance to the detriment of the country of origin. In sending countries , labour migration
may lead to mitigation of the labour market by reducing unemployment and wage growth, but may also emphasize imbalances
directly, or through spillover effects. As EU Romanians mobile workers are over 2.25 million (2011, WB) and the trend of
growth continues, though more moderate in the crisis, the effects on the Romanian economy grow and "advantages of mobility"
are significantly lower. In this paper we have estimated the main effects of the free movement of Romanian workers in the EU
and identified appropriate policy measures to manage outflows. We used labour force survey data and estimates of BM and
determined the impact on socio -economic variables such as GDP, the level and structure of employment, on state budget
incomes, investment potential.
© 2014 The Authors. Published by Elsevier B.V.
Selection and peer -review under responsibility of the Org anizing Committee of ESPERA 2013 .
Keywords: EU workers, labour market, structural disequilibria, local development, sending countries
* Corresponding author. Tel.: +0040744160340;.
E-mail address: [anonimizat]
© 2014 The Authors. Published by Elsevier B.V. Open access under CC BY-NC-ND license.
Selection and peer-review under responsibility of the Organizing Committee of ESPERA 2013

738 Valentina Vasile / Procedia Economics and Finance 8 ( 2014 ) 737 – 746
1. Introduction
Free movement of workers in EU countries is a mechanism for managing single labour market equilibrium in
th
is geographic area. Labour resources include indigenous labour force, EU workers (internal mobility of EU
citizens) and immigrants (workers from outside the EU). Employment structures generated by the business to
custo
mize the countries and industries, according to: supply -demand report on native workers labour market, the
access polic
y for immigrants and history of the opening up policy for economic migrants (who have created a
specif
ic employment model based on specific jobs and economic activities, etc.).
Romanian migrants in 2010 represented about 5.5 % of all migrants in the OECD area with a temperate
dynamics during the crisis (OECD 2012). Romanian and Bulgarian migrants accounted for only 0.6 % of the
population of EU25. Moreover, recent flows of people in th ese countries have played a minor role in the labor
market destination countries during the crisis, difficulties on host labour markets being created mainly by the
financial and economic cris is and structural problems in the labor market (EC – PR, 2011). Unfortunately, this flow
of
labor resources is not a part of the unemployed or inactive people of working age, but among the employed ones
on
origin country labour market, emphasizing structural deficits at the national level. These outflows are associated
with average productivity declining and a high er extern al mobility of the young graduates – developed countries are
m
ore opened for receiving higher education or highly qualified personnel, persons with secondary education but
experienced, in activities with high employment deficit – medicine , IT etc . Low -skilled migrant flows are
decreasin
g in level and intensity in the medium and long term, labour demand for such workforce is narrowing as
occupations or on fields of activity, in host economically developed countries .
Most studies focus on the effects of labor mobility on th e host country, but the impact should not be overlooked
demographic, economic and social impact on countries supplying labor resources. Most references highlights the beneficial effects of mobility starting from the premise th at the labor movement decreases the pressure on the labor
market by reducing unemployment and generate benefits for remain household members through remittances. In this
pap
er we examine some of the factors and effects on labour market and economic development in the origin
co
untries in case of prolonged temporary ec onomic migration, as is the case of Romania.
2. Economic migration from Romania and labor market equilibrium
In Romania the economic factor was the main reason fo r m igration, whether it was emigration (as in the first
part of the 90s), whether it was temporary, and later, after the extension of stay for employment became final
(specific for the last decade).
Economic migration is mainly justified by comparatively lower incomes that can be obtained in the country of
orig
in and by higher expectations regarding working cond itions in host country. Wages received in destination
countries are higher than they would have received in the country of origin but almost always below those of native workers. Working conditions, especially for the low skilled are often far below the minimum standards of the destination country, especially in construction (Harms R., 2014, presenting the situation in Germany for Romanian and Bulgarian workers), agriculture (in Spain) etc., given that they are legal workers. Individual decision for
economic migration depends on the ratio of advantages and disadvantages, of gaps between employment opportunities and jobs quality in the country of origin and the degree of acceptance of the conditions of employment in the country of destination (multiple and indi rect discrimination faced by migrant worker – lower wages, relatively
poor
working conditions, local social obstacles, xenophobic positions of the politicians, applying patterns and
generalizing for isolated/small cases of inadequate behavi our on the labour market or in the community, etc.).
Currently external temporary labour mobility is the main form of economic migration of Romanian workers. If
e
migration flow has not a significant proportion, is around 15 000 people annually, temporary mobility is more
i
mportant , that 386 000 people annually, for a mobility period up to 12 months and 727 500 people for a for a
m
obility period over 12 months (Census 2011). Temporary mobility is about 5.53 % (in 2011) of total resident
popu
lation, and permanent loss of population through emigr ation (NIS), recorded in the whole period 1990 -2012
a
mounts to about 441 000 people, i.e. 2,19 % of the resident population recorded in the last census. Destination
countries of migrants is oscillating in number and intensity, but persist as preferences Italy, with about 37 % of all
departures (163 100 persons), followed by U.S. with 11.28 % (49 700 people) , Hungary with 9.35 % (41 200

739 Valentina Vasile / Procedia Economics and Finance 8 ( 2014 ) 737 – 746
persons) and Canada with 8.73 % (38 500 people) – NIS data, Yearbook. Among the EU countries of interest for
e
migration of Romanians are include d: Germany, with 5.86 % (25 800 people), Austria, 5.75 % (25 400 people) and
Fran
ce with 4.08 % (almost 18 thousand s). Other destinations are Spain with 1.97% (about 8800 people) or Greece,
bu
t only 1.5% (6600 people). Emigration to other member countries was much lower, less than 1 % of the people
who emigrated .
Most of emigrants are working age persons contributi n g to a significant lost of labour potential. From total
emigrants in the period 1990 -2011, 55 % were between 26 and 60 years old, and of the temporary workers (2011,
cen
sus data), aged 25 -59 years were 69 % (mobile workers for a period under 12 months), and 72% respectively
(mobility period over 12 months). Destination countries fo r t emporary mobility for working abroad are similar with
those selected by emigrants. After a multi -year temporary mobility the trend is mainly not for returning in Romania,
bu
t of changing the permanent residence in the host country . On destination countries, the temporary mobility in
2011 (
census data) show a distribution of around 45 % of the Romanian mobile workers in Italy and around 20 % in
Spain. In Germany, France and the UK are working about 5 -7% of those go up to 12 months and 3 -5% of those
w
orking for more than 12 months. Distri bution to other destinations is reduced , by Belgium and Austria respectively
1-2% and the Netherlands, Denmark and Sweden is less than 0.5%.

Source: Census data, 2011, NIS
Fig. 1. Distribution of the Romanian temporary workers on destination countries in 2011

If we consider their position in the labour market, we fi n d that labour mobility is not less tense pressure over
unemployment than in very small extent, Amigo survey data showed that the majority of mobile workers previously
had a job in the Romanian economy. The share of mobile workers abroad for a period of 6 -12 months was 88.9 % in
2004
and 96.7% in 2012 on an upward trend, with a maximum of 97 % in 2012 (out of the total mobile workers).
For 12 m
onths and over period of mobility, from 96.3 % in 2004 reach to 97.8 %, with a maximum of 98.5 % during
the crisis ( 2007- 2009 ), including in the peak year of the number of mobile workers, i.e. 2008.
Of the working age mobile population, the most of them are aged between 24 and 29 years, followed by 20 -24
y
ears. Persons aged 40 -45 years are twice less than the first -mentioned age group, which means the degree of 05000010
0000150000200000250000300000350000
Italy
Spain
Germany
France
United Kingdom
Hungary
Greece
Belgium
Austria
Portugal
USA
Cyprus
Irland
Netherland
Czech Republic
Denmark
Canada
Sweden
Switzerland
Norway
Other countriesover 12 months
6-12 months

740 Valentina Vasile / Procedia Economics and Finance 8 ( 2014 ) 737 – 746
selectivity of external mobility and destination labour market is related to age, dependen c y of the marital status,
number of children etc. Young graduates are most flexible ha ve the highest work potential, and are less dependent of
the household in sending country. Those over 40 are usually occupied by prof ession and gained a higher degree of
specialization, but here is the problem that the family plays an important role in the mobility decision and that the
acceptance of the employment conditions in the destinati on country (income, possibility to be accompanied by
family, social security, etc.)
Mobility over 12 months in the entire analyz ed period is relatively constant for the 20 -44 years age group,
regardless
of the regulatory regime mobility (in the pre – and post -accession), the system of restrictions input and
p
ossible forms of employment.

6-12 months 12 months and over

Source: Calculated based on AMIGO survey database (NIS), 2013, see also (Vasile V. (coord), Boboc C., Pisica S., Cramarenco R E., 2013)
Fig 2 Mobile workers abroad, by age groups, 20 -44 years old (% in total mobile workers), 2004 -2012

Several other findings are important through the impact on the labo ur market of the country of origin and the
e
mployment structure : a) become mobile mainly workers already employed on the Romanian labour market, by
2010 , around 85 % of the total, b) unemployed persons, for the same period accounted for just under 2 % of the
activ
e age persons left to work abroad, c) of the inactive , only 10% were going abroad for employment; most of the
mobile inactive persons are young persons, often accompany theirs parents who intend to remain in the labor
m
obility for longer period, or temporary leave Romania for education (ERASMUS program, university education,
master, Phd courses, specialisation etc); d) about 20 % of those who were going to study are already employed (and
in
this case we referring to specialisation studies, professional development etc ).

Note: 0510152025200
4
2005
2006
2007
2008 2009201020112012
20 – 24 years old 25 – 29 years old
30 – 34 years old 35 – 39 years old
40 – 44 years old010203020
04
2005
2006
2007
2008 2009201020112012
20 – 24 years old 25 – 29 years old
30 – 34 years old 35 – 39 years old
40 – 44 years old
02040608010
0
2004 2005 2006 2007 2008 2009 2010 2011 2012Innactive persons
Active persons
Employed persons
Unemployed persons

741 Valentina Vasile / Procedia Economics and Finance 8 ( 2014 ) 737 – 746
AMIGO Survey provide a limited database related to economic migration and we can present information based on associative criteria only for
p
ersons in mobility for a short term (6 -12 months)
Source: Calculation based on AMIGO database, 2013, see also (Vasile V. (coord), Boboc C., Pisica S., Cramarenco R E., 2013)
Fig 3 Persons mobility for 6 -12 months, 2004 -2012 (%)

Therefore disequilibria on labour market increase and in some cases become chronic: the unemployment rate
evolution is relatively independently of temporary mobility fl ows or the impact is significantly low; the number of
persons deficit, on some professions or specialisations becomes chronic (specialists and workers in construction,
healthcare personnel – nurses etc and doctors, med ical speci alists, IT specialists, some engineers, etc. ) .
Labour mobility is defined as the size, frequency and mobility, mainly related to employment policy in the
co
untry of destination and not based on national employment policy in sending country, which by comparative
lower wages and poorer working conditions (in some case s also because of the precariousness of technical
endowment of the workplace like in healthcare -performant medical equipments but also adequate working tools and
supplies) fails to maintain employment or to attract new g raduates. In addition, labour mobility is also an adaptive
response of the new generations of labour force, especially of those with university degree whom insertion on the
labour market is difficult mainly because of the skills mismatch between demand and supply or of the barriers to
e
mployment difficult to manage (e.g. length of specialty/work experiences).
Economic migration push factors for Romanian citizens are both external and internal. In the country of origin
may be considered as relevant push factors : a) business environment (Romanian companies are still experiencing the effects of the economic downturn and have a lowe r ability to boost activity and generate jobs; inadequate
employers employment policy based mainly on "work experience" and not on higher potential of graduated for the same level of qualification; foreign capital is a weak supporter of job quality creation and net employment
increasing; firms with foreign capital maintain low wages and poor working conditions for Romanian employees in order to maintain internal profitability comparative advantages based on labour cost at the expense of the quality of
employment (temporary economic migration becomes more attractive than employment in foreign companies in Romania; FDI in Romania do not really support employment growth, the net effect of restructuring / modernization activities undertaken by foreign capital after privatization in most cases lead s mainly to job cuts and less to job
creation
, so net impact is negative); b) lack of public policy measures to support graduates employment and / or
lower efficiency or improper implementation of these; c) lack of coherence between employment policy and the decent job payment associated with under -financing of some activities with a higher propensity for economic
m
igration of the emplyed persons working in such activities (such as healtcare sector); d) low living standards,
co
upled with a restrictive financial environment for crediting (the interest rates for credits in Romania are several
ti
mes higher than in the host EU countries), especially for young families (low level wages which can not alow
contracting housing loans etc). In host countries , immigration/mobile workers flows are supported by: a) a
demographic aging and native labor supply shortages ; although high unemployment is invoked by host countries as
barrier f
or new immigration flows, only in the EURES portal for work brokerage, vacancies are around 1.6 million
(y
ear 2013), b) selective policies to attract immigrants by professional fields and a favourable business environment
-employers that work with immigrants gain comparative advantages of operating labor costs for equivalent work
qu
ality; c) wage differentials for equivalent work by using mobile workers instead of native ones; d) overqualified
e
mployment practice – about 50% of employed immigrants from the EU -12 in other member states, in recent years
2011/1
2 ).

742 Valentina Vasile / Procedia Economics and Finance 8 ( 2014 ) 737 – 746
3. Estimates of the economic impact of labor migration
Always labour migration created primarily economic benefits for the individual and his family. Had also both
pos
itive and negative affected the economy of the country of departure and the destination (Vasile, V., 2013). EU
of
ficials recognized that migration of Romanians is associated with employment expectations and not with
ben
efitting from social assistance (Kourkoulas D., Reding V., Andor L., 2014)†.
Migration impact is always considered as a win -win situation for sending and destination countries. Studies
h
ave measured the impact on destination countries by effects on GDP and employment as most dependent economic
v
ariables by labour mobility. For example, recent studies (EC – PR, 2011) mention an increase by 0.3 % of the EU27
'
s GDP and by 0.4 % of the EU15 ’ s GDP on account of economic mobility from EU-2, but there are no similar
esti
mations for the origi n countries. Immigrant workers create significant net benefit for the country of destination‡:
reducing demographic shortages; also younger immigrants are already educated, so they produce benefits in the host
econ
omy without previous public investments in their education; a s employees or entrepreneurs immigrants
contribute more to social funds in the destination country and less benefitted (plus unemployment rate among
i
mmigrants is lower than the corresponding to domestic labor); immigrants workers support consumer demand for
g
oods and services and local businesses development and profitability (labour force based on immigrants
employment is "cheaper" ) and also contribute to local/national public revenu es (ta xes on wages and indirect taxes as
VAT etc); real estate market support (by paying for houses rent or investment – buying houses); contribute to
mitigate the demographic imbalance by new generations / ch ildren ; develop small entrepreneurial activities based on
specific customs from their country of origin (traditional food, cultu ral activ ities, clothing, specific craft items etc)
(Vasile V. (coord), Boboc C., P isica S., Cramarenco R E., 2013).
On short and medium term, for the origin country, the total net impact from workers external temporary
m
obility is positive, following win -win model. If the labour mobility is longer (a few years) or is turned into
e
migration the positive effects are decreasing sharply and even more turn them into losses. Labour mobility
negative impact for the origin country can be synthesized at least on the following levels :
– Demographic shortage, because labor migration is completed by long periods often with emigration
(
permanent change of residence);
– Loss of demographic potential, the children of migrants are born abroad and become citizens of the host
co
untry (second generation of immigrants) whose recovery (retu r ning in the parents’ origin country) is unlikely;
– final loss of labour force potential by young graduates; th e y have a higher propensity for seeking a job abroad
in case of better opportunities than average aged labour force; the new en trance on the labour market in Romania are
faced with informal discrimination – special conditions for work experiences etc ;
– Potential significant loss of high skilled labor force by students recruiting for multinational companies or
f
oreign employers, sometimes for the same professions or skills th at are in deficit also on origin country labour
market (in constructions, healthcare, ITC etc) ;
– Increased numerical and structural employment deficit; in recent years, according to the NIS data, 80 % of
Romanian workers in external temporary mobility were employed before migration (Vas ile V., Boboc C., Pisica S.,
CramarencoR E., 2013);
– long term lower positive impact of remittances; remittance flows is inversely proportional to the duration of the
m
obility, educational level, age and family situation; statistics of remittances sent through official channels mainly
h
ighlights the significant cash flows to Romania from Ital y and Spain and insignificant in countries such as the
United Kingdom, France, Germany, Netherland , Denmark etc.
– Decreasing level of contributions to social funds, with incidence of public funds for health, pensions (PAYG

† http://www.mediafax.ro/externe/muncitorii -romani -motiv -de-cearta -in-parlamentul -european -swoboda -dezbaterea -este-dureroasa -o-
reminiscenta -a-timpurilor -cand -natiuni -si-minoritati -erau-atacate -11909208
‡ Timothy Kirkhope, member of the European Conservatives and Reformists Group, acknowledged that the free movement brought "growt h and
cultural diversity and helped Europe to face the challenges of modern labour market requirements change" and United Kingdom has benefited in
particular , "in the modern era of this form of migration" read more at http://www.mediafax.ro/externe/muncitorii -romani -motiv -de-cearta -in-
parlamentul -european -swoboda -dezbaterea -este-dureroasa-o- reminiscenta -a-timpurilor -cand -natiuni -si-minoritati -erau-atacate -11909208

743 Valentina Vasile / Procedia Economics and Finance 8 ( 2014 ) 737 – 746
pillar of public pension fund) wage guarantee national fund, etc.
– Lower direct state incomes from taxes on salaries corresponding to immigrants employed before temporary
extern
al mobility on Romanian labour market;
– Decreasing domestic consumption of goods and services an d reducing budgetary funds inflows from indirect
taxes – VAT etc.
– Net loss of public investments in education, related to working age immigrants ;
– declining demand for goods and services at local level in the areas of immigrants ‘ residence, consumer demand
being transferred to the local market of the country of destination (local economic growth in host country and at
least eq
uivalent growth declining in the country of origin);
E
migration after the first stage of stress relief labor market and declining demand for social assistance
(unemployment , etc.) produced definitive and unfavorab le economic effects of the loss of labor resources and
declining demand for goods and services for consum. The net effect on state revenues (state budget and social
funds) is negative and definitive. To these we added the demographic loss (both adults and future children), and
negative impact on labour market. An estimation of the annual negative impact of the emigrants cumulated stock (in the period 1990 -2011) took into account the GDP and budget revenues decrease by the labour force shortage
(
working age emigrants aged 25-60 years). We took into account the following parameters: social productivity of
lab
or, the average annual rates of tax and contribution rates , taxes and fees associated with their salaries, average
gross and net wages and labour costs and macroeconomic pa rameters relating to the corresponding year (2011 or
2010 depending on migrants stock considered) as GDP, Gross value added, employment and employees.
In the case of temporary mobility: a) in mobilit y : the remittances partially develop real estate market
(construction or purchase of housing) , support durable market consumption of goods and services (but preferably is
directed
towards acquisitions from import and not domestic ones), with m odest impact on the domestic production,
person
al services marke t; just a small part of remittances are source for small business development, supporting
local econ
omic growth; b) the return to origin countr y, depending on mobility contract, the workers remains
employed (posted workers) or have to seek for a job an d registering as unemployed. In some cases, returned
migrants starts small entrepreneurial activities and could contribute to job creation and local economic growth
(including entrepreneurship in agriculture). Although it is appreciated that the labour mobilit y has positive impact to
th
e origin country, we have to notice that often the cumulative positive effect, especially in the case of long -term
te
mporary mobility is decreasing and turn into negative one as the mobilit y duration is prolonged.
Economic effects of labour migration in the origin country are relativ ely difficult to be measured, are mainly
potential losses (of labour force, persons -demographic perspective – or of value added/GDP and budget revenues).

Table 1 Losses associated with economic migration (migrants stock, aged 25 -60 years)

Year Persons Effect on
total employme
nt (%) Effect on
wage employm
ent (%) % in
GDP % in state budget
revenues (direct
t
axes on wage
incomes ) % in state budget
revenues (indirect
tax
es on consumption –
VAT )
emigrant s (NIS,
Yea
rbook ) 1990 –
2011 238860 2.61 5.49 2.29 3.99 1.25
Migrant workers (NIS,
2011 census ) 2011 790849 8.65 18.18 7.58 13.21 4.13
Romanian workers on
labour market in
destination countries
(WB 2010 database ) 2010 2769053 29.97 63.28 26.69 46.24 16.67
Source: Author calculation based on NIS and WB database

Therefore, annual are lost i mportant financial source for state budget that are not compensate by remittances but
j
ust partially. In 2010, remittances inflows in Romania (World Bank estimates ) accounted for only 3.3% of
Ro
mania's GDP, so much less than the potential loss from economic migration which amounted to about 7.5 % if we
con
sider only temporary workers re gistered in the 2011 census. If, howe ver, we consider the total Romanian
workers stock on labour markets in destination countr ies (WB 2010 database), then the annual loss of GDP is

744 Valentina Vasile / Procedia Economics and Finance 8 ( 2014 ) 737 – 746
significant, over 26%. Effects appear more severe if we calculate loss of state budget revenues; if we consider only
the taxes related to potential wage incomes of the migrant labour (social contributions and wage related taxes and
VA
T for goods and services consumption) we reach to potential losses of around 17% of state budget revenues in
th
e case of considering temporary migrant workers registered in 2011 (census database) and of almost 2/3 of total
state bu
dget revenues in the case of total stock of Romanian workers on host countries labour markets. These
estimates, by the size of effects could be consider a very important warning of the loss of human potential and
f
inancial resources related to economic migration – demographic aging, loss of human potential (children of
mi
grants), non -recovery of public investment in education, social issues and press ures on welfare systems for the
remain older household members.
4. Some of the social effects of the econo mic migration in origin country
Although mobile worker benefits are evident in econom ic terms mainly by the higher revenues, from social
perspective the impact is more important as mobility extension, but not all of them are positive ones. Generally, if
the host community is open to employment of immigrants, on a long term will be accomplished a gradual social
inclusion. Main social problems are related to the remains members of the households in the origin countries or in
case on returning from mobility. Extension of mobility leads to the gradual isolation of the family left in the origin
country and the reduction of income from remittances (extension mobility leads to higher investment in the host
country and decreasing amount of remittances sent to family in the origin country). Social problems are more
complex if the remain household members are old aged (par ents of migrant workers) an d children (in case of both
parents are in mobility and the childre n are raised by grandparents or other relatives). On migrant household the
social effects are different in complexity and impact, depending on the status of migrant workers departure. If as
migrant workers are both parents, the children left in the ca re of relatives are most affected, they develop specific
social problems, school dropout, juven ile delinquency, poverty, social exclusion, etc. Higher economic dependency
of the household on remittances is, higher the social vulnerability and risk of exclusion is faced.
On local community effects occur especially when the migr ant workers return is after many years or when the
family reunites abroad, often remaining elders who face problems of poverty and become beneficiaries highly
dependent of social assistance. Depopulation due to long term mobility or emig ration lead not only to net lost of
human capital created by public education but also to social depriva tion, alteration of relation with migrant workers.
In the case of young graduated without family dependent members, maintaining family relationship during
migration is more volatile. Youth higher skilled mobility (or brain drain), without dependent family (husband / wife
or children) is
mostly associated with the final migrati on (emigration) and often after the parents death, with
breaking ties with the country of origin. In these cases, the return or development of collaborations with origin
co
untries for economic or social purposes is rather the exception and not th e normality. Therefore, social networks
in
such cases does not develop, ties with the country of origin or are only episodic, random.
Another social aspect important from the perspective of t he high number of Romanians living and working
abroad is the communication and social ties created between diaspora and origin country. In the case of Romania
such connectivity is rather poor and is not able to cr eate bridges of economic and social sustainable cooperation.
5. Conclusions and policy recommendations to mi tigate the adverse effects of p rolonged economic migration.
From previous analysis we can summ arise t hat economic migration is mainly based on mobility of the working
age segment of population already employed, which means for the labo ur market in Romania and business
perf
ormance a major loss of at least the following reasons :
– Becomes immigrants those persons high skilled, spec ialis ed and with work experience, unsatisfied by
working conditions or job payment; a significant part of those immigrants by leaving jobs increased
structural employment deficit (specialists in healtcare sector, spec iak ists in ITC etc); mainly they are
looking for a long term economic mobility, so are less likely to return on a n unattractive market after
co
ntract that generated mobility is completed; they are continuing mobility in a circular form or accept
anoth
er contract at the same employer ;

745 Valentina Vasile / Procedia Economics and Finance 8 ( 2014 ) 737 – 746
– Replacing its staff vacancies through external migration with immigrants (non – EU workers) usually is not
at th
e same level of professional performance and often even at the same level of qualification, which
affects productivity and quality of work;
– Mobility from employment is stimulated by the dest in ation countries policies and is not related to the
restructuring of the Romanian economy; as a rule, th e highest specialists are living for working abroad and
therefore, on Romanian labour market structural empl yment deficits are associated with lower work quality
and both aspects are difficult to be overcome on shor t time after migration; equivalent replacement means
additional expenses for training in the workplace and / or narrow specialization, and time to reach the level
of productivity of mobile workers ;
– migration of specialists, especially in areas s uch as healthcare, IT etc. result in breaking the collaborative
chains and/or of working teams disolution, even givi n g (temporary) to some specializations (such as
cardiovascular surgery for children from Targu Mures in the period 2010 -2012 , etc.), with a long-term
i
mpact , especially in terms of driving effects ;
Multiple effects and lasting demographic, economic an d social eff ects of economic migration reconsider the
specialist
s and policy makers aproach related to the management of the workers mobility. Freedon of persons
circulation
in the geographic area of the EU gain benefits for the destination country but the negative/adverse
impact on the long term in the origin countries claim s a new approach of the labour mobility issue from the
perspective of stimulating employment and labor resources capitalization on the Romanian national market. It is a
social and societal respon
sibility to recover pu blic investment in education and to ensure for new entrants to the
lab
or market quality jobs, as the public warranty support for welf are t hrough economic growth and suitable labor
income s. Romania's experience has shown that the minimal an d ep isodic involvement in some aspects related to
external mobility of workers has resulted in an exodus to better jobs and / or higher incomes of about 3 million
people of working age and a high propensity of graduates to seek for employment outside the country (directly or
through trasnational companies operating in Romania). Concerns of officials on the serious adverse long-term
ef
fects of economic migration (Campeanu , M., 2014)§ is required to be embodied in measures to increse
employment, especially for young people with higher education, as representing a viable response to demographic
aging
and for restoring the competitive potential of Romanian products and services .
It requires a comprehensive approach , integrated and sustained – the promotion of mechanisms and policy
in
struments to ensure the connection between education (education for the labor market), research (application of
RDI results, including the promotion of academic entrepre neurship) and the creation of quality jobs (employment
condition, remuneration, progress in career); Economic growth is unlikely to be automatically backed up by new
j
obs created without public policy support, to facilitate investment and labor resources reallocation in a coherent
co
ncept of employment reform.
Economic crisis has shown that the crisis/reducing the activity and then recovery were accompanied by an
in
crease in the risk of poverty of employed persons – for keeping the job s were willing to work fewer hours or for
lo
wer wages (EC – ESDE, 2013). Lack of resilience of the labor market and of the social system led to a reduction of
e
mployment prevailing in the affected areas (low -paid jobs in the host country; dependent employmen t on export, in
th
e origin country; consumption based on remittances ). As global effect we faced with a higher polarization of the
R
omanian immigrants’ labour market and with empowerment of two profile s of Romanian workers left to work
ab
road: a) young graduate worker, employed or seeking for a job, with above average educational profile, flexible to
a v
ariety of employment forms , flexible for accepting the risk of new jobs, but with professional development
oppo
rtunities and for higher incomes. Such type of labour de mand in host countries is increasing and the saving of

§ http://www1.agerpres.ro/economie/2014/01/17/ft -ministrul -muncii -din-romania -avertizeaza -asupra -impactului -dezastruos -al-exodului -tinerilor –
calificati -12-58-11, A gerpress, Financial Times: Ministry of Labour from Romania warns of the disastrous impact of the exodus of young skilled,
and states that the necessary steps to promote youth employment (financial support for the initiation of new business, grants to lower mortgage
c
osts to purchase first home and a number of grants for entrepreneurs that invest in agriculture). Friday, 17 -th of January 2014, 12:58

746 Valentina Vasile / Procedia Economics and Finance 8 ( 2014 ) 737 – 746
the public investments (costs for education) makes immigrants more attractive for occupying these jobs than the
natives, so, local authorities will be more open to accept them; b) medium or low skilled worker for employment in
lo
w-paid jobs, unattractive for natives various reasons. The share of such jobs in total employment will be gradually
red
uced in the medium and long term, partly by the disappearance of the demand for some of these jobs. In a certain
prop
ortion such jobs will not be anymore available for Ro manian workers because of the cheaper immigrants
inflows from non – EU countries (Vasile V. (coord), B oboc C., Pisica S., Cramarenco R E., 2013). This polarization
w
ill increase in coming years due to higher demand for skilled labor force and for the further overqualified
e
mployment deepening in the host country.

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