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The Bitter Taste of Strawberry Jam: Distortions on Romanian Labour Market beyond 2007

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  • Silasi, Grigore
  • Simina, Ovidiu Laurian

Abstract

The paper is a contribution at the scientific debate of migration and mobility issues in the context of an enlarged European Union (EU-27). We consider that Romania, a country with a labour market that faces distortions, will benefit from migration on short term, but will need to import labour force in order to maintain the development trend. Remittances, as result of Romanians emigration after 2002, helped the economic development of the country in the last years (remittances’ inflow doubled the FDI). As a response to the media debate regarding Romania’s emigration, we consider that the fear of mass migration from Romania following the year 2007 is not justified. While the European (and mostly British) media cries on the threat of Bulgarians and Romanians’ emigration, as following to the 2007 accession, the scientific reports say that the A8 countries’ migration benefits to economy of the EU15 countries. In the same time, the Romanian media and the Romanian entrepreneurs announce the ‘Chinese invasion’ and the lack of labour in construction, industry and even agriculture. We see labour as goods: the economic theory say that goods are moving with the prices, the highest price attracts (more) goods. Romania is not only a gateway for the East-West international migration (like Portugal, Spain, Italy and Greece for the South-North direction), but a labour market in need of workers. While a big part of the labour force is already migrated, mostly to the SE Europe (some 2.5m workers are cited to be abroad, with both legal and illegal/irregular status), the Romanian companies could not find local workers to use them in order to benefit from the money inflow targeting Romania in the light of its new membership to the European Union (foreign investments and European post accession funds). Instead of increasing the salaries, the local employers rather prefer to ‘import’ workers from poorer countries (Chinese, Moldavians, Ukrainians, who still accept a lower wage as compared to the medium wage in Romania, but bigger enough as compared to those from their country of origin). The paper concludes with the case of the Banat region, considered the ‘Western Europe’ from Romania, as a small scale model for the labour market relations within the whole EU.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11184.

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Date of creation: 26 Oct 2007
Date of revision: Oct 2008
Handle: RePEc:pra:mprapa:11184

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Related research

Keywords: labour migration; labour market distortions; South-Eastern Europe Syndrome; network effect; decision making; motivation; need for esteem; Banat region;

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  1. Jan Fidrmuc, 2002. "Migration and regional adjustment to asymmetric shocks in transition economies," CPB Discussion Paper 7, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Matloob Piracha & Roger Vickerman, 2002. "Immigration, Labour Mobility and EU Enlargement," Studies in Economics 0209, Department of Economics, University of Kent.
  3. Bruder, Jana, 2003. "East-West Migration in Europe, 2004 - 2015," Thuenen-Series of Applied Economic Theory 40, University of Rostock, Institute of Economics.
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