Roma Inclusion: Roma Inclusion: An Economic An Economic Opportunity for Bulgaria,Opportunity for Bulgaria,the Czech Republic,the Czech Republic,Romania andRomania and Serbia Serbia

Human Development EconomicsEurope and Central Asia Vice Presidency

What is the What is the economiceconomic argument for Roma argument for Roma inclusion?inclusion?

World Bank Study tries to answer this:World Bank Study tries to answer this:Countries: Bulgaria, Czech Republic, Romania, Countries: Bulgaria, Czech Republic, Romania, SerbiaSerbia

Quantitative analysis: 7 household surveysQuantitative analysis: 7 household surveys

Qualitative analysis: interviews with 222 Qualitative analysis: interviews with 222 stakeholdersstakeholders

Four Key MessagesFour Key Messages

** Roma inclusion is smart economics Roma inclusion is smart economics (a) (a) current labor market integration of Roma is poor current labor market integration of Roma is poor

(b) there are large economic benefits of equal labor (b) there are large economic benefits of equal labor market opportunities for Romamarket opportunities for Roma

(c) (c) Benefits outweigh costs of educating RomaBenefits outweigh costs of educating Roma

** Roma want to contribute and have the Roma want to contribute and have the potential to do so potential to do so

** There is knowledge about what works for There is knowledge about what works for Roma integration Roma integration

** Resources are availableResources are available

Roma are much less likely to be working than Roma are much less likely to be working than non-Romanon-Roma

Roma with jobs earn much less than non-RomaRoma with jobs earn much less than non-RomaRoma earnings among those with a job relative Roma earnings among those with a job relative to non-Roma with jobsto non-Roma with jobs

Young Roma are entering labor markets at Young Roma are entering labor markets at much higher rates than aging majority much higher rates than aging majority populationspopulations

Equal labor market opportunities would Equal labor market opportunities would generate billions of euros annually in extra generate billions of euros annually in extra outputoutput

Equal labor market opportunities would Equal labor market opportunities would generate fiscal benefits of hundreds of millions of generate fiscal benefits of hundreds of millions of euros annuallyeuros annually

Fiscal benefits are many times larger than the Fiscal benefits are many times larger than the public spending on education public spending on education

• Assume it would cost 50% more per Roma child• Assume Roma currently complete primary and 10% completes secondary• Assume no Roma attends pre-primary or tertiary

• Fiscal benefits would be >3 times the needed Fiscal benefits would be >3 times the needed resources to bridge education gapresources to bridge education gap

Education Gap between Roma and Majority non-Education Gap between Roma and Majority non-Roma in RomaniaRoma in Romania

0%

20%

40%

60%

80%

100%

6 8 10 12 14 16 18 20 22 24

Non-Roma Roma

6 8 10 12 14 16 18 20 22 24

Non-Roma Roma

Four Key MessagesFour Key Messages

•Roma inclusion is smart economicsRoma inclusion is smart economics

•Roma want to contribute and have Roma want to contribute and have the potential to do so the potential to do so

•There is knowledge about what There is knowledge about what works for Roma integration works for Roma integration

•Resources are available Resources are available

Facts do not accord with common perceptions: Facts do not accord with common perceptions: Roma want to work but cannot find jobsRoma want to work but cannot find jobs

Male LFP Female LFP

Facts do not accord with common perceptions: vast Facts do not accord with common perceptions: vast majority of Roma do not depend on social assistancemajority of Roma do not depend on social assistance

Education facts accord with perceptions: the vast Education facts accord with perceptions: the vast majority of Roma do not have a secondary education majority of Roma do not have a secondary education or higheror higher

Is there a labor market return to secondary Is there a labor market return to secondary education?education?

Many policies can help labor market integrationMany policies can help labor market integration

Roma labor market inclusion policies - Roma labor market inclusion policies - (a) (a) Education and Employment are currently Education and Employment are currently

primary focus of World Bank - primary focus of World Bank - • Labor activationLabor activation• School attendance & completion School attendance & completion • School readiness School readiness

(b) (b) Health and productivity; housing and Health and productivity; housing and health; housing and mobility also deserve health; housing and mobility also deserve attentionattention

Education and Employment Policies to Enhance Roma Inclusion Education and Employment Policies to Enhance Roma Inclusion

• Improve outcomes of working-age population through employment Improve outcomes of working-age population through employment activationactivation

• Improving school readiness Improving school readiness

• Improving secondary completionImproving secondary completion

• Rigorously evaluating programs to learn which specific ones are most effective Rigorously evaluating programs to learn which specific ones are most effective

to improve results and generate public support for proven programsto improve results and generate public support for proven programs

Resources are availableResources are available

National resources and EU structural funds are National resources and EU structural funds are available for Roma inclusion – and can be used available for Roma inclusion – and can be used for Roma inclusion! Necessary:for Roma inclusion! Necessary:

(a) Information exchange what works(a) Information exchange what works

(b) Building capacity for multi-sector (b) Building capacity for multi-sector approachesapproaches

(c)(c) Forming partnerships to use available Forming partnerships to use available resources more! resources more!

•

Four Key MessagesFour Key Messages

•Roma inclusion is smart economicsRoma inclusion is smart economics

•Roma want to contribute and have Roma want to contribute and have the potential to do so the potential to do so

•There is knowledge about what There is knowledge about what works for Roma integrationworks for Roma integration

•Resources are available Resources are available