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Long-run Economic, Budgetary and Fiscal Effects of Roma Integration Policies

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Abstract

Although, the need for an efficient Roma integration policy is growing in Europe, surprisingly little robust scientific evidence regarding potential policy costs and expected benefits of alternative policy options has supported the policy design and implementation so far. The present study attempts to narrow this evidence gap and aims to shed light on long-run economic, budgetary and fiscal effects of selected education and employment policies for the inclusion of the marginalised Roma in the EU. We employ a general equilibrium approach that allows us to assess not only the direct impact of alternative Roma integration policies but also to capture all induced feedback effects. Our simulation results suggest that, although Roma integration policies would be costly for the public budget, in the medium- to long-run, economic, budgetary and fiscal benefits may significantly outweigh short- to medium-run Roma integration costs. Depending on the integration policy scenario and the analysed country, the full repayment of the integration policy investment (positive net present value) may be achieved after 7 to 9 years. In terms of the GDP, employment and earnings, the universal basic income scenario may have the highest potential, particularly in the medium- to long-run.

Suggested Citation

  • Ciaian, Pavel & Ivanov, Andrey & Kancs, d'Artis, 2018. "Long-run Economic, Budgetary and Fiscal Effects of Roma Integration Policies," Working Papers 2018-07, Joint Research Centre, European Commission (Ispra site).
  • Handle: RePEc:jrs:wpaper:201807
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    1. Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Econometrica, Econometric Society, vol. 68(5), pages 1029-1054, September.
    2. d'Artis Kancs & Patrizio Lecca, 2018. "Long‐term social, economic and fiscal effects of immigration into the EU: The role of the integration policy," The World Economy, Wiley Blackwell, vol. 41(10), pages 2599-2630, October.
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    Cited by:

    1. Ciaian, Pavel & Kancs, D’artis, 2018. "Social Mobility Barriers for Roma: Discrimination and Informal Institutions," European Review, Cambridge University Press, vol. 26(4), pages 670-685, October.

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    More about this item

    Keywords

    Roma; social marginalisation; education; labour market; integration policy; universal basic income;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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