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Romania and the new economy of migration: costs, decision, networks, development

Author

Listed:
  • Silasi, Grigore
  • Simina, Ovidiu Laurian

Abstract

In some earlier studies, as a response to the media debate during the hot summer of 2006, regarding Romania’s emigration as following the accession to the EU, we were saying that the fear of mass migration from Romania was not justified. 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. Nowadays, almost two years after January 1st, 2007, the facts prove our prediction as being true. 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, even before the EU enlargement), 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 (Moldavians, Chinese, Ukrainians and others who still accept a lower wage as compared to the medium wage in Romania, but bigger enough as compared to those from their countries of origin).

Suggested Citation

  • Silasi, Grigore & Simina, Ovidiu Laurian, 2008. "Romania and the new economy of migration: costs, decision, networks, development," MPRA Paper 41937, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:41937
    as

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    File URL: https://mpra.ub.uni-muenchen.de/41937/2/MPRA_paper_41937.pdf
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    References listed on IDEAS

    as
    1. Matloob Piracha & Roger Vickerman, 2002. "Immigration, Labour Mobility and EU Enlargement," Studies in Economics 0209, School of Economics, University of Kent.
    2. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier.
    3. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-637, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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