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Niall O’ Higgins Università di Salerno

“Its not that I’m a r ascist , its that they are Roma”: Roma discrimination & returns to education in South Eastern Europe. Niall O’ Higgins Università di Salerno. Presentation. Overview /Goal of the Analysis Data A few observations concerning the Roma in the Labour Market in SEE

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Niall O’ Higgins Università di Salerno

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  1. “Its not that I’m a rascist, its that they are Roma”: Roma discrimination & returns to education in South Eastern Europe Niall O’Higgins Università di Salerno Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  2. Presentation • Overview/Goal of the Analysis • Data • A fewobservationsconcerning the Roma in the Labour Market in SEE • Estimationof: • Levelofeducation • ProbabilityofEmployment • Returnstoeducation • Simulationof the effectsof policy • Concludingremarks Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  3. Overview/Goal • Roma didverybadly out oftransition in termsofLabour market outcomes – i.e. wages/incomes and employment in SEE – Questioniswhy? • Twomainexplanationsoffered: • Low Educationlevels • Labour Market Discrimination • N.B. Twoexplanations are notactuallymutuallyexclusive • Analysisseekstothrow light on the relative importanceofthesetwoexplanationsanddraws the connection betweenthem Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  4. Data UNDP survey of Roma, Majority (& IDP) populations • in – at the time - 9 territorial areas of SEE (Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Kosovo, Macedonia, Montenegro, Romania and Serbia) • Not representative samples – emphasis on collecting information on Roma & Majority populations living in “similar circumstances” • So lets have a look at the Roma situation Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  5. Unemploymentrates are universallymuchhigherfor Roma thanmajoritypopulations…. Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  6. And informalemploymentismuchhigheramongst the Roma… Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  7. And monthlywagesmuchlower…(National Median male wage=100) Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  8. A Glance at Explanations • Low education • Discrimination • InteractionbetweenEducation & Discriminationbasedexplanations – the returnstoeducation Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  9. Education – Roma clearlyhavemuchlowerlevelsofEducationthanMajoritypopulations Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  10. But, employmentreturnstoeducationappeartobelowerfor the Roma Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  11. And wagereturnstoeducation (apartfrom at tertiarylevel) are muchlowerfor Roma Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  12. Analysis • LIML appliedto a Twoequationmodel (foremployment) and a FourEquationmodel (forwages) • Linear equationforyearsofschooling • Probitmodelofemploymentdetermination • (ProbitofEmployee status) • (Log-)Linear wageequation (returnstoeducation) • Foremployment, 1) & 2) used • Forwages, 1) – 4) used • Endogeneity and sample selectioncontrolledfor. Estimatesundertakenseparatelyfor Roma/Majority and males/femalesAge-group= 25-64 Estimatesinclude also some personal characteristics& countryfixedeffects Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  13. Also in thiscontext the employmentreturnstoeducation are muchlowerfor Roma Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  14. Decomposition of employment probability difference between Roma and majority Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  15. Butwagereturnsappeartobesimilarfor Roma and majority (n.b. in % terms) Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  16. Butthereisstill some roomfordiscriminationbasedexplanationsofwagedifferences Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  17. simulation Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  18. Simulated effects on male expected wages of increasing education and removing discrimination Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

  19. ConcludingRemarks • Evidence in favourofboth low education and discriminationbasedexplanationsofpoorLabour market outcomesof Roma • In particular, Roma havemuchloweremploymentreturnstoeducation – alsoconsistentwithdiscriminationas a major factor – wagereturns (once endogeneity/selection iscontrolledfor) are relativelysimilar • Perhaps more interestingis the connection betweentheseexplanations – ifreturnstoeducation are lowerfor Roma thenitisrationalforthemtoacquirelesseducation • Major Policy implication – Cannot tackle education deficit withoutdealingwithdiscriminationissues Poverty & Social Inclusion in the Western Balkans, Brussels, Dec 14-15, 2010

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