Specializarea : Finanțe Bănci [601052]

Universitatea Spiru Haret București
Facultatea de Științe Economice
Specializarea : Finanțe Bănci
Programul de master: Managementul și Finanțarea Proiectelor
Publice și Private

Some socio -economic effects of migration labor on the
countries of emigration.
Romania

coordonat or Conf. Univ. dr. Carmen Costea

masterand: [anonimizat]

2015 -2016

This project presents the fluxes and recent trends of labor migration power and the
impact that`s generated in the economical and social life in România. After the merging
between România and European Union, the circulation across boundries becomed
complete ly liberalized, and the Romanians took advantage of it. In this piece whe will try
to analyze the socialdomographic consequences,whe have a great interest because the
category of emigrants it`s composez mainly from young people in between they`r 30`s.
There are important consequences looking financial aspects and aspects regarding
the quality of romanian cityzens, and the volume of money transfer was approximately
seven miliards (euro) in the year of 2007.
There is also , a big social impact among the lifes of the imigrants families. The worst
problem is the temporar abandonment of the childrens by the imigrants parrents and
the fact that the authorities are forced to elaborate new politics to monitor the situation.

Summary

1. Introduction……. ……………. …………….. ………………………………………………… .page 4.
2. Marks in the speciality literature. …………………………… ………………………….. .page 5.
3. Trends in permanent migration changes that took place after 1 989……….. .page 7.
4. The intensity and consequences of temporary migration…….. ………………..page 9.
4.1. The effects of temporary migr ation at sociodemographic
froma demographic perspe ctive…………………… ……………………..page 9.
4.2. The economic effects of te mporary migration………….. …………..page 11.
5. Conclusions …………….. …………………………………………………………… ………page 13.
6. Bibliography……………….. ………………………………………….. …………………….page 15 .

1.Introduction
After 1989, when the frontier barriers fallen , the migration reached the highes point
in Roman ia. Ther is a known fact that our country it`s a country of net imigration , and
this fact implies severe consequence of different levele: economic, sicuak and
demographic. It`s crucial to underline the statiscal data loocking migration that catches
regula r imigrants that shi fts their residence permanently.
The work force migration it`s hard to cuantify , even do in the last years it becomed the
most important component of romanian migration. The migration it`s usualy defined in
the folowing mode: the mobil ity of a person or a group of persons form an geografical
unit to another across an administrative or political boundry and which strives to move
and shift their residence permanently or temporarly in a certain place, other then the
one they come from.
Having in mind that to movement beetween two geographical units doesn`t have to
appear direct, it can be differentiated between the place of origin and the place of
destination, transit regions and even the place of destination or the welcoming
region. The mo vements across the inner places of a country are usualy defined as
internal migration and in consequence the migrations over the international borders and
named international migrations.
From this way of looking (perspective) , whe will focus exclusively above the
international migration. The objective of this work is to present and exemplify a few
efects of the migration of work force outside of România at microeconomic level
(peoples and households), and even at maroeconomic level. That`s why ,I thinked at
România as one of the main source of work force furnizor for the European market. This
project it`s divided as folows:
In the first part I tried to present briefly the most relevant discoveryes of research in
the domain of migration and the impact above the emigration countryes .The literature
that refers to est -european countryes it`s affected by the lack of statistical data above
the migration of work force from the respective countryes. For a better understanding of
the emigration process and of the specific of this proces in R omânia I presented in the
second part, the most important tendences of the permanent migration after 1989. Whe
can identify 5 phases of this phenomenon. The semnificative component of romanian
migration is the temporary migration of work force , presented in the third section, where
I tried to expose the most important things of the work force migration ,even the pozitive
and alto the negative ones, at individual or colective level.
In the end of this project I tried to extract the conclusions from this lit tle research that I
tried to accomplish.

2. Marks in the speciality literature.
The speciality literature is very generous in what means the analis and the corelation
betwen emigration and economical growth from the perspective of emigration
countryes. Even do there is a short number of empiric studies on this theme . There
where`nt few moments when the results of those studies where contradictionary. Barro
and Sala-i-Martin (1992) for exemple , shows that the in United States and in Japan , in
almost a ll cases the migration has a positive effects even do a small one , over the
economical growth. With all thease , the empiric results of Blanchard and Kats
(1992)and Dolado (1993) are in contradiction with the ones of Barro and Sala -i-Martin
(1992) . Those will come to the conclusion that the migration is negatively corelated with
the convergence beetween regions. The lack of evidence and the contradictory results
lifts the fact that there is need of a deeper research on this theme,a think that brings a
smile for our endevours.
The interes theme of the actual debates looking the migraton problem is the nature
of economical effects in the row of the countryes that welcomes imigrants.Even do
neither the causes nor the consequences of the migration are not well understood and
neither the mode that the research is gonna develop in the future in this direction.
Imigration becomed a complex fenomenon , stearing polemics in the research effort ,
in special for the region of welcoming in represented by Europe. In eur ope , the accord
of free circulation in the European Union flattenes the way for the work force migration
beyond the national boundryes.
The approach most seen aims at the imigration impact on the autohton work force
market . Countless studies estimated pro duction theoremes to calculate the resorbment
of the substitution between imigrants and locals.
The majority of existend studies are making referals at the effects of the imigrant
work force market over the autohtone work force market,through the estimat ion of an
ecuation in reducted form between salary and unemployment, in witch the weight of the
imigrants from a region or a domain of industry is the main explicative variable of
interest. For resolving a posible dificulty of izolation the imigration it s elf like a cause,
almost all authors are waging instrumental variable estimates. There are no profs from
economical point of any semnificative reduction of autohtone work labour.
The European literature (Bauer, Zimmermann,2002) bringed me to a similar
conc lusion . Until naw it wasn`t posible the quantize of any secundar effect potentialy
positive among the goods markets, even less the indirect efects (positive) like the

growth of the goods variety and servicies. Some socioeconomic efects of the work
migrati on force among the emigration countryes.
Analysis of migration across countries of emigration was less the attention of
researchers in recent decades, but has gained interest in recent years by the " brain
drain", which it diminishes . This process is often approached in a demographic context.
European societies are faced with an aging quite worrying, which led to the introduction
of social security pay -as-you-go, following a considerable demographic pressure. Public
perception realize increasingly more that the future regulation on immigration, is set to
attract immigrant youth, competitive economically so may alleviate some of the burden
of demographic associated with the aging of the population, as shown in Bonin's
research (2000).
The interest in analysis of the effects of migration on countries of emigration is
highlighted in the OECD report Migration On Effects Of Sending Countries: What Do
We Know ?, Louka T. Katseli developed by Robert E. B. Lucas and Theodora Xenogiani
(2006). It places special importa nce on the impact of remittances and their
consequences present macroeconomic and microeconomic.
Temporary migration tends to lead to increased flow of remittances, compared to
permanent migration, especially when it involves low -skilled migrants waiting t o return to
their country of origin. León -Ledesma and Piracha (2004) analyzes the case of eleven
Eastern European countries in transition in 1990 -1999 and aim correlation between the
level of remittances and investments.
Studies on the effects of migration in Romania shows that if Western countries will
continue to attract labor from Romania, economic growth will be affected significantly
(Nicholas, 2007). Also Silași and Simina (2008) analyzes the labor market situation in
Romania in the context of interna tional migration. They believe that Romania, a country
with distortion of the labor market, will have short -term benefits from migration, but long
term will become an importer of labor. Constantine (2004) analyze migration from a
regional perspective and i n the context of Romania's accession to the European Union.
Meanwhile, Goschin, Constantin and Roman (2009) deals with some effects of
migration, especially those targeting human trafficking.

3. Trends in permanent migration changes that took place
after 1 989 .
In demographic trends and population structure in Romania, as consequences of
economic and political transition, reflected the demographic situation in decades.
Romania's population decreased in the last 19 years and there is still no visible signs of
recovery. Population decline may be the result of three factors separately or in
combination: negative net external migration higher than population growth; increase of
death rate exceeding the birth rate; recoil birth ra tes below the rate of mortality. All
these changes took place in Romania after 1989. In addition, 1990 and 1991 are known
for high emigration offsetting the natural growth, and so moderate.
Since 1992, natural population decrease was associated negative e xternal migration,
following a sudden and profound drop in the birth rate and a revival of mortality.
(Persons) Source: Demographic Yearbook of Romania in 2006 and 2007. If Romania is
noted that demographic change in the last 10 years has been influenced by a number of
factors, among which stands out in particular: freedom of couples to decide on the
number of copies and the time in which to make copies, the high level of economic and
social costs sustained by the population in transition, lack of housing and limited access
of young people in their own home, changes in population behavior on the formation
and division of families, social instability, unem ployment. To these factors must be
added and external migration, which contributed to the decrease of Romania's Net
external migration Some socio -economic effects of labor migrati on on countries of
emigration .
Romania underwrite global migration having a history marked by the migration
period ascent and decline, mainly based on domestic economic conditions, socia l and
political. Calls human nature to try to find better living conditions naturally attract the
population of more developed regions poorer parts of the world. Migration process
involves a subject (immigrant or immigrant), at least two countries (country of origin and
country of destination and countries transient) and the intention to obtain a residence
permit or to find a job in the country destination. Romania's external migration has two
sides: one legal, statistically recorded as emigration and immig ration and labor
migration. The first component is very important as size hovering in the range 10 -15000
thousands of emigrants and immigrants per year. One can observe the high proportion
of immigrants who have university, it stood at a level close to 25% , the main destination
countries being Germany, Italy, USA and Canada. The flow of immigration has two
components: a reversible migration and a moderate number of immigrants from
Moldova. It is home to the bulk of Romanian immigrants; some of them are inte rested in
obtaining Romanian citizenship in order to find opportunities for a better life in the

European Union. Source: Demographic Yearbook 2006 Statistical Yearbook of
Romania in 2007.
We can identify several stages in the history of migration from Romania, so that after
1989 we face the following situation: ƒ
– 1990 -1993: Permanent mass emigration of ethnic minorities (German,
Hungarian) and Romanians fleeing political unrest and poverty. Many have
sought political asylum in the West, reaching a level of 116,000 applications in
1992 (Ethnobarometer, 2004);
– 1994 -1996: a low level of Romanian economic migration to Western Europe,
mainly for seasonal work or illegal, and very low levels of ethnic migrants and
asylum seek ers;
– 1996 -2001: development of several trends in parallel and increased emigration,
transforms the phe nomenon into one complex to be analyzed:
a) permanent migration was found growing in the US and Canada, more than was
registered legal migration in European countries;
b) the event, especially since 1999, illegal migration, "incomplete" or circular by
European countries for illegal work (1).
c) increase smuggling, illegal migration phenomenon which overlaps but is
distinguished by violence and abuse by traffickers / employers. This type of migration is
considered to be met especially for women.
d) in 199 9, witnessing a reduction agreements with labor recruitment of different
European countries (Germ any, Spain, Portugal, Italy);
e) a small number of Romanian migrants returning from Moldova, and a strong
inflow of Romanian migrants between Germany and Roma nia.
– 2002 -2007: Schengen visa exemption has promoted rapid growth in circular
migration, even to the extent that Romanians who were previously "locked in" to
Schengen countries, were able to return to Romania to enter the system of
circular migration (O SF, Ethnobarometru, 2004). The existence of the possibility
of legal residence for a period of three months as a tourist has led to the
development of a sophisticated system of circular migration, focused primarily on
destinations such as Italy and Spain ( IOM, 2005). This new strategy allowed to
withdraw from the control of the European labor market, so that migrants arrived
illegally to work for three months, shar ing with other Romanian jobs.
– 2007 and so far we see a free access to the European labor ma rket, which is
favorable for creating a European market Several social economical impacts of

labor migration on countries of emigration 57 labor, but also to record slippages
severe local markets.
4. The intensity and consequences of temporary migration

Migration for employment has become the most important component of Romanian
migration in recent years. Unfortunately, official statistics do not capture t he whole
phenomenon of migration and employment figures to be just as relevant in 2005.
According to the Romanian Office for Mi gration estimates Employment , there are about
two million Romanian employees abroad outside the seasonal work, which represen ts
more than 10% of the country's inhabitants.
In this article, we use data from study abroad temporary dwelling. Economic
migration of Romanians: 1990 -2006, conducted by the Open Society Foundation
(FSD), which we consider nationally representative. T he sample of 1,400 people, used
to collect data at national, was designed in two stages probabilistic model. The unit of
selection in the first stage was polling station, and in the second stage were interviewed
people. According FSD, more than a third of households had at least one migrant work
abroad during that period of the study mentioned above
4.1. The effects of temporary migration at
sociodemographic f rom a demographic perspective .
The consequences of migration, both tem porary and that of the final material. Tend to
remain permanently in the destination countries is well known and lead to considerable
losses among the population. This loss of a weakening in economic growth or even
decline in economic activity.
According t o recent studies it can be concluded that international mobility is greater
among people who were old enough to work. Consequently, the countries of emigration
facing an accelerated aging of their populations. The human factor is the most important
source of economic growth, growth rates are expected to be lower in the remaining
native country.
Most of those who emigrate are young, and their share is growing, so claims that
emigration can affect the age groups with high rates of fertility, thus reducing the
potential for newborns in Romania. This is all the more worrying as it becomes
permanent emigration. The structure of emigration by gender reveals some changes so
that immigrant women are becoming more numerous in recent years. In 2004, 62% of
migrants we re women in the age group 26 -40 years, which means 58% of the immigrant
population and the proportion is growing. Adverse effects on birth rates and fertility

beginning to be increasingly departures .Some social economical impacts of labor
migration the 59 countries of emigration present, the proof being that a growing number
of children are born outside the country.
The implications of migration in t he family are many, they form part both from the
effects of both positive and negative. The money sent by emigrants to their families
improve the quality of life with positive implications for family relationships. On the other
hand, we face the suffering of the family for the loss of one or more members even
temporarily. In fact, as the period is higher than the stronger the effects on the family.
The departure of a member determines reorganization of roles within the family. In
this case, family members t ake on roles / functions that migrant, which can lead to loss
of wealth within the family and imbalances within the couple. All this can easily lead to
family dissolution (divorce). One of the most important adverse effects of labor migration
seems to be a gainst the children of migrants who remain (in the best case) with only
one of their parents.
There are lots of cases when both parents migrate in order to find a job and
therefore, grandparents, other relatives or friends take guardianship of children.
Sometimes migrants abandon their children who eventually end up in state care. So
children are affected to a very large extent (in some cases these situations are
traumatic) by their parents as people who give care can not successfully fulfill the role of
parent.
Another social class that could be adversely affected are the elderly, especially in
communities with high levels of migration. In situations where children leave the country
with their parents, they must go through a period of adjustment, learn a ne w language
and learn to live in a different social environment, which most often involves a some
degree of stress. According to the aforementioned study, during 1990 -2006, the majority
of persons from households with members who have been living abroad fee l no change
relating to family relationships.
Starting from FSD study, I built my own model of analysis. I considered variable that
someone in your home has been abroad for some time and the extent to which this has
– for you – effects on children. Thus we found that only 11% of respondents said they
have problems with their children in this regard. Although the percentage of
respondents who declare affected is low, the differences are between different
categories of respondents. Thus we see that those wi th work experience abroad
respond in a higher percentage than others that their experience has resulted in some
changes in terms of family relationships .
Impact on relations living abroad with childre n Migrants tend to believe that their
experience abroad has a positive influence on family relations, considering so money

earned abroad to work to improve the quality of life in immigrant households and thus to
improve relations within the family. They do not take into account the impact on their
children's lives, thus neglecting their future development.

4.2. The economic effects of temporary migration .
From the perspective of this paper is important to present the impact of labor
migration on the economy. There is a general consensus that temporary migration can
contribute to improving skills in the immigr ant experience gained by working abroad. In
this context, we intend to verify the following hypothesis: if migration experience abroad
affects the income received after returning to their home country. Thus, we consider
income as the dependent variable and the set of independent variables: education,
viewed through last school graduated; knowledge of computer use; work experience
and work experience abroad.
From working abroad on revenue acquired by migrants after their return home:
1. Temporary work abroad has a positive effect on income It register migrants return to
their country of origin (positive correlation);
2. As expected, the most important factor affecting the level of income is education. The
person has completed a higher level of education, the greater will be the income
(positive correla tion);
3. Revenues are directly affected by work experience and knowledge of computer use
(positive correlation);
4. In this model we examined the influence of languages on income but this factor has
not been a significant influence, which is why he was removed from the original shape
of the model.
The direct impact of international migration can be easily measured by analyzing the
money earned from investments made abroad. Investment analysis allows us also to
see to what extent households invest these a mounts or do they just spend these
amounts for the purchase of consumer goods. National data show that in the last five
years, a significant part of the purchase durable goods Romania: Romanian buys 50%
of household effects, 37% opt for expansion / moderni zation of houses and 16% for the
purchase of machinery etc. In any event, regardless of the goods acquired
approximately 10% of the amounts spent are procured migration activities. If we restrict
the analysis for individuals who buy goods on account of money derived from
international migration, we can see that more than 50% of them spend in order to

expand / modernize housing and a similar percentage is spent purchasing goods
Household household. A significant percentage (ap proximately 21%) is accounted for
by households in the past five years have spent money to purchase one or more cars.
Labor migration and entrepreneurship are two components of life very correlated.
Work experience gained abroad are correlated with entrepr eneurship when a person
wants to develop a business. As migrant accumulate financial capital, human and
relational and meet their basic needs will tend to invest in productive activities,
becoming an entrepreneur. For a significant part of Romanian migrant s, work abroad is
an interim strategy for entrepreneurial strategy, said the strong link between the work
experience and entrepreneurial orientation on foreign territory, both behavioral and
intent.
The conclusions above, give rise to a series of external influences on economic
migration. The most important effects are related slips and the multitude of severe
dysfunction of t he labor market, among which:
– the emplo yability of the labor force;
– unempl oyment r ate and its features;
– mass emigration of q ualified labor – loss of "brain" capable of creating higher value
added;
– distortion wage and labor segmentation; amplification of the sh adow economy (labor
'black');
– local potential reduction of labor; use immigrants in order to compensate for lack of
local labor.
In addition to these aspects of migration there is a series of regional beneficial
effects. The most important short -term effect is to reduce unemployment, which is
present in most large countries of emigration such as Romania and Pola nd, Slovakia
and Bulgaria. If migration includes especially unemployed people, and the impact on the
budget is positive (because fewer people will apply for unemployment benefits).
No sociopolitical favorable impact should not be ignored, given that high
unemployment levels are often associated with social tensions, which entail huge
expenditure budget to restore social balance (especially in areas with a high
unemployment rate). Some socio -economic effects of labor migrati on on countries of
emigration .
Another beneficial effect, consider it important to reduce pressure on the Romanian
government reform. For some areas / regions, labor migration abroad of local markets

eased labor and time pressure on social assistance. For other areas / regions, migration
to a better job led to labor shortages affecting potential local economic and social
development. In fact, the largest labor shortage is displayed Romanian regions
registering high migration flows.
Another positive effect of migration is the transfer of f oreign currency, with strong
implications at both micro and macro level. NBR estimates, regarding remittances reach
US $ 1753.5 billion in 2004 an d USD 4440.9 million in 2005 , which represents 4.51% of
Romania's GDP in 2005 . effects of transfer of mon ey to the macroeconomic level are
quite difficult due to multiple interactions commensurate to the level of macroeconomic
variables. These transfers have significant effects on investments and savings. The
most visible impact of these transfers are recorde d on household consumption, so
important macroeconomic registered in domestic aggregate demand component of
GDP. Money transfers to households represent direct sources of their income growth,
leading to higher consumption and hence the temporary reduction of poverty. These
amounts have the ability to reduce social polarization through their redistributive effects.

5. Conclusions
The Romanian external migration is too little known. Western countries now need
foreign labor for economic reasons. Some Western coun tries are beginning to
experience a slight reduction in natural population and immigration complements this
natural decrease, so that the population does not change dramatically.
To avoid the phenomenon of natural population decline in the coming years,
Western countries will encourage immigration and labor reservoir will be the countries of
Eastern Europe, including Romania. These movements migration generates important
economic consequences. In this article we analyzed the demographic consequences,
especi ally since the category that emigrated for economic reasons in recent years is the
young population (aged 30 years).
Identified important economic consequences on financial and quality of life of
Romanians since the amounts transferred volume was approxima tely seven billion in
2007. We are dealing also with a significant social impact on the lives of family
migrants. The problem is most severe temporary abandonment of minors by parents
who migrate in search of better jobs and that the authorities are determined to formulate
policies to monitor the situation, which would entail additional expenditure. Romania's
external migration in the period ahead will be influenced by how high and sustainable

economic growth rate will be the extent to which this growth will significantly raise the
standard of living and of course the immigration policies of Western countries.
In accordance with existing scenarios after a severe destabilization caused by the
economic crisis in Romania the firs t signs of recovery are highly uncertain. We will point
this Article arguing with faith that migration is influenced primarily by economic
developments, which opens new possibilities for future analysis.

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https://www.thefreelibrary.com/Migration+and+population+decline+in+post –
communist+Romania. -a0323260126