Circumventing the State: Illegal Labour Migration from Ukraine as a Strategy Within the Informal...
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CCircumventing the State:ircumventing the State:
Illegal Labour Migration from Ukraine Illegal Labour Migration from Ukraine as a Strategy as a Strategy
Within the Informal EconomyWithin the Informal Economy
Natalka PatsiurkoCERESCERES
Petro Jacyk Program for the Study of UkrainePetro Jacyk Program for the Study of Ukraine
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Background: Interest in the Issue Two observations: Theoretical: literature on the post-Soviet
economic transformation
• did not elaborate on the impact of the large-scale changes on the labour market,
• did not address sufficiently the institutional problems in the post-communist societies, ‘soft’ problems of the economy (politicization, securing the rule of law, informal economy), especially in the slow reformer countries.
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Practical: mass migration from Ukraine in 1998-2002 to the countries of Southern Europe, accomplished within a relatively short period of time in an efficient manner.
Explanation needed: how possible is such how possible is such effective migration from a previously effective migration from a previously closed country? closed country?
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Ukrainian Labour Migration: a Challenge for the Conventional Migration Theories
Macro-economic differentials:Macro-economic differentials: why did why did Ukrainian migration develop to the relatively Ukrainian migration develop to the relatively poorer corners of the EU?poorer corners of the EU?
Migration systems:Migration systems: how to explain migration how to explain migration to the countries with no specific previous to the countries with no specific previous economic, political, or cultural connections? economic, political, or cultural connections?
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Dual Labour Market theory:Dual Labour Market theory: explains explains migration solely within the migration solely within the receivingreceiving labour labour market. How is the matching of demand for market. How is the matching of demand for immigrant work accomplished between immigrant work accomplished between Ukraine and Southern European countries?Ukraine and Southern European countries?
Network theories: : migrant networks migrant networks facilitate migration. Still a problem with facilitate migration. Still a problem with explaining the efficiency of this particular explaining the efficiency of this particular migrationmigration..
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Research QuestionsResearch Questions
From migration theories:From migration theories: what other factors, what other factors, except economic differentials and networks, except economic differentials and networks, can explain this migration? can explain this migration?
From observing the institutional problems From observing the institutional problems of post-communism:of post-communism: is informal economy, an is informal economy, an institutional sphere between the state and the institutional sphere between the state and the market, conducive to the development of market, conducive to the development of migration?migration?
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Central Question:Central Question:
The link between migration and the informal economy
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This link is investigated at multiple levels: how does the informal economy of the sending country impact the development of migration?
what is the role of states and migration laws in enabling/ controlling labour migration?
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Does informal economy match the supply and demand for immigrant work in the receiving societies?
What are the migration facilitating institutions in the sending and the receiving countries?
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Data Sources and Data Sources and MethodologyMethodology
Two principal sources of my findings:Two principal sources of my findings:
In-depths interviewsIn-depths interviews (around 34 interviews) (around 34 interviews) with returning and actual migrantswith returning and actual migrants Conducted between 2001 and 2005Conducted between 2001 and 2005 About 50% of interviewees were migrants to About 50% of interviewees were migrants to
ItalyItaly Snow-ball samplingSnow-ball sampling appropriate for the issue of appropriate for the issue of
illegal migrationillegal migration
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Two surveys of actual migrants (a total of actual migrants (a total of 500+questionnaires):of 500+questionnaires): one set of the primary survey data collected in one set of the primary survey data collected in
Rome in 2003, 77 interviewsRome in 2003, 77 interviews
one set of secondary survey data, collected by an one set of secondary survey data, collected by an NGO from Western Ukraine, 436 interviews, NGO from Western Ukraine, 436 interviews, among immigrants in Italy among immigrants in Italy
++Additional statisticsAdditional statistics from the governmental from the governmental sources, Ukrainian and Southern European; sources, Ukrainian and Southern European; +observations of migrant institutions at work; +observations of migrant institutions at work; +media accounts of migration;+ legislature on +media accounts of migration;+ legislature on migration.migration.
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Level 1:Level 1: Socio-economic Socio-economic Development of Migration Development of Migration
from the Informal Economyfrom the Informal Economy Migration developed within the informal
economy of the sending country:
Cross-border (shuttle) trade
Short-term labour migration to Central Europe
Long-term labour migration to Western (Southern Europe)
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Migration:Migration: an an economic strategyeconomic strategy of the population in the of the population in the
conditions of the sharp decline of the state conditions of the sharp decline of the state economy economy
Not an isolated instance, but a Not an isolated instance, but a mass strategymass strategy involving millionsinvolving millions
Distinct Distinct form of ‘employment’form of ‘employment’ between the between the emerging institutions of the market economy and emerging institutions of the market economy and the deteriorating institutions of the state-the deteriorating institutions of the state-controlled economy.controlled economy.
0
200
400
600
800
1000
1200
1400
1600
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Nu
mb
er o
f la
bo
ur
mig
ran
ts, 0
00
Central Europe Southern Europe Total
Mass Strategy: Labour Migrants from Ukraine in Eastern and Western Europe
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1.1. Migration emerged from informal economic Migration emerged from informal economic practices of the populationpractices of the population
2.2. Incomplete renegotiation of the citizen-state Incomplete renegotiation of the citizen-state relationshiprelationship
rise of the informal economy rise of the informal economy rise of migrationrise of migration
Summary on Socio-Economic Origins of Migration Within the Informal Economy
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3.3.Continuation of the ‘beating the system’, Continuation of the ‘beating the system’, circumventing the state attitude:circumventing the state attitude:Centralized political management, combined with the Centralized political management, combined with the notorious inefficiency of state-socialist economies in notorious inefficiency of state-socialist economies in providing and distributing consumer goods, fostered a providing and distributing consumer goods, fostered a popular entrepreneurial culture of the opportunistic-popular entrepreneurial culture of the opportunistic-debrouillard (rather than modern-rational) kind by debrouillard (rather than modern-rational) kind by forcing citizens to use ‘unofficial’ (extralegal) and forcing citizens to use ‘unofficial’ (extralegal) and ‘crony’ support networks to make everyday life possible. ‘crony’ support networks to make everyday life possible. These coping strategies […], informed by beat-the-These coping strategies […], informed by beat-the-system/bend-the-law attitudes toward the official system/bend-the-law attitudes toward the official structures, had become ubiquitous social practice, structures, had become ubiquitous social practice, normatively sanctioned by popular opinion. (Morawska, normatively sanctioned by popular opinion. (Morawska, 2001:59)2001:59)
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Level 2:Level 2: The Role of the The Role of the StatesStates
Ukrainian state: neglected migration until Ukrainian state: neglected migration until well into its developmentwell into its development
migration policies concentrated on the migration policies concentrated on the migration flows inherited from the collapse migration flows inherited from the collapse of the SU, immigration and citizenship of the SU, immigration and citizenship policies.policies.
-- repatriation, refugees, trafficking (out--- repatriation, refugees, trafficking (out-migration of its own citizens not a priority)migration of its own citizens not a priority)
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Policies were delayed:Policies were delayed:-- recognition of the problem of labour migration: 2003-- recognition of the problem of labour migration: 2003
-- first and only bilateral agreement with a Southern European -- first and only bilateral agreement with a Southern European
country (Portugal): signed 2003, ratified only 2005country (Portugal): signed 2003, ratified only 2005.. Institutional basis for policies weak:Institutional basis for policies weak:
-- -- State Committee on Nationalities and MigrationState Committee on Nationalities and Migration
Management of labour out-migration was de-facto Management of labour out-migration was de-facto delegated to NGOs and international organizationsdelegated to NGOs and international organizations
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Italian state: caught in the contradiction Italian state: caught in the contradiction between the demand for immigrant work between the demand for immigrant work and policies to restrict migrationand policies to restrict migration
Informal economy: resolves the contradiction Informal economy: resolves the contradiction between the economic demand and restrictive between the economic demand and restrictive policies, by creating space for immigrant policies, by creating space for immigrant incorporation.incorporation.
Contradiction in policies: restricting entry and Contradiction in policies: restricting entry and recognition of immigrants within the country, recognition of immigrants within the country, through periodic legalization campaigns.through periodic legalization campaigns.
Impact of Legalization Campaigns and Quota Entries
on the Stocks of non- EU Residents in Italy
1,194,792
943,5301,072,596
1,215,135
778,254
834,451
781,129
827,416
1,675,000
193,200238,200
689,000
31,629 22,474 50,000 50,000
0
500,000
1,000,000
1,500,000
2,000,000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Non-EU Residents
Regularizations
Entries by Quotas
27,203 42,40016,619
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Summary on the Role of on the Role of StatesStates
In both states: state negligence In both states: state negligence relegates the labour migration to the relegates the labour migration to the sphere of informal economysphere of informal economy
=> migration developed => migration developed outsideoutside the the state channels, and state channels, and in avoidancein avoidance of of the state channels.the state channels.
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Level 3:Level 3: The Role of the The Role of the Informal Economy in Informal Economy in Immigrant IncorporationImmigrant Incorporation
Informal Economy: providesInformal Economy: provides accessaccess to the to the receiving market and matches supply and receiving market and matches supply and demand through the mechanism of networks:demand through the mechanism of networks:
-- Italy: demand for migrant workers in -- Italy: demand for migrant workers in domestic services and in informal economydomestic services and in informal economy
Gender and Age Composition of the Ukrainian Migrants in Italy, 2002 and 2003
2002 Italy
2003Rome
Total number of workers in the survey
436 77
Percent of females 87.8 80.5
Average age of respondents 40.3 36.6
Average age of female respondents 41.5 38.3
Average age of male respondents 32 29.7
Percent of respondents 45+ years old
38.2 25
Percent of females 45+ years old 42.5 31.1
Percent of males 45+ years old 7.5 0
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Informal economy also demonstrates Informal economy also demonstrates efficacy efficacy and flexibility in placingand flexibility in placing migrants in the migrants in the receiving market: receiving market:
I actually went without knowing anything, and I did not I actually went without knowing anything, and I did not imagine anything. Nothing, concretely speaking, I knew imagine anything. Nothing, concretely speaking, I knew nothing. I found myself as if on an uninhabited island nothing. I found myself as if on an uninhabited island or in the open sea. I was left to flounder. When I or in the open sea. I was left to flounder. When I arrived, I understood that I did not know the language; I arrived, I understood that I did not know the language; I even had no clue where I was. And I had to find a way even had no clue where I was. And I had to find a way out, on the spot. If I managed, fine, if not [out, on the spot. If I managed, fine, if not [respondent respondent started cryingstarted crying], who knows...[1]], who knows...[1]
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I did not think much about my decision to leave. Once I wanted to go to I did not think much about my decision to leave. Once I wanted to go to America, I wanted very much to go there. I could speak the language, America, I wanted very much to go there. I could speak the language, and there are so many opportunities there! I was looking for a chance to and there are so many opportunities there! I was looking for a chance to improve my material situation. I needed money, and I did not have my improve my material situation. I needed money, and I did not have my own place to live. We lived with parents, in a two-room apartment with own place to live. We lived with parents, in a two-room apartment with such a little space. From whatever point you look, it was small: it was such a little space. From whatever point you look, it was small: it was me, my sister, my mother with my father, and my son, in a small me, my sister, my mother with my father, and my son, in a small apartment. This was pushing me strongly. On the other hand, I wanted apartment. This was pushing me strongly. On the other hand, I wanted to improve my language skills. Living in a place where they speak to improve my language skills. Living in a place where they speak English would give me a lot, for improving it. But as we know, it was English would give me a lot, for improving it. But as we know, it was impossible here to arrange visas for the States, there were no chances. impossible here to arrange visas for the States, there were no chances. So my decision emerged unexpectedly, in one single week. I thought to So my decision emerged unexpectedly, in one single week. I thought to myself: I will go to a place for which it is possible to get a visa! Perhaps myself: I will go to a place for which it is possible to get a visa! Perhaps it was the last cry of despair that the life was going to a worse. So I it was the last cry of despair that the life was going to a worse. So I opened this visa quite unexpectedly, and left just like that. I went to opened this visa quite unexpectedly, and left just like that. I went to nobody, alone, by myself. I did not have any information as such. [22].nobody, alone, by myself. I did not have any information as such. [22].
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But: amounts to the But: amounts to the disadvantaged position of immigrants of immigrants in the receiving economy,in the receiving economy,
e.g. in Italy: Ukrainian immigrants are segregated in the e.g. in Italy: Ukrainian immigrants are segregated in the secondary labour marketsecondary labour market::
Rome 2003 (n=60 )
Caregiver (old, sick, children)
35,0%
Construction and related
8,3%
Service jobs5,0% Domestic/
Cleaning46,7%
Other5,0%
Sectors of Employment of Ukrainian Workers in Italy
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are mostly illegal:are mostly illegal:
-- -- 74% in 2002 and 66% in 200374% in 2002 and 66% in 2003
illegality diminishes wages: illegality diminishes wages: -- the regression analysis of immigrant earnings -- the regression analysis of immigrant earnings shows that wages are significantly lower if shows that wages are significantly lower if migrant is employed in the household sector, in migrant is employed in the household sector, in the South of the country, and is illegal (the result the South of the country, and is illegal (the result of insertion through the informal economy)of insertion through the informal economy)
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Level 4: Migration- Migration-Facilitating InstitutionsFacilitating Institutions
Differentiating between:Differentiating between:
Institutions Institutions facilitating the journeyfacilitating the journey
Institutions Institutions facilitating the stayfacilitating the stay in the in the receiving societiesreceiving societies
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Institutions facilitating the journey: travel agencies and migrant networks
Informal networksInformal networks
webs of personal relationships providing webs of personal relationships providing information and help in migrationinformation and help in migration
‘ ‘Formal’ networks: travel agencies, Formal’ networks: travel agencies, ‘migration merchants’ ‘migration merchants’
provide multiple services: visa, provide multiple services: visa, transportation, jobstransportation, jobs
represent ‘commercialization of migration’represent ‘commercialization of migration’
Trafficking vs. Smuggling
Migrant’s Intentions Declared to the State
Organiser’s (transporter) Intentions Towards the Migrant
Correctly Declared
Incorrectly Declared Undeclared
Correctly Declared Legal Migration via Legal Entry
Irregular Migration via Legal Entry, ‘legal smuggling’
Smuggling via Illegal Entry
Incorrectly Declared ---Trafficking via Legal Entry
Trafficking via Illegal Entry
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Facilitating the stay: migrant-created institutions
Informal labour market of migrantsInformal labour market of migrants- Information about jobsInformation about jobs- Selling jobsSelling jobs
Meeting points Meeting points
- - act as physical locations of the informal labour act as physical locations of the informal labour marketsmarkets
- establish connections with home (transport, - establish connections with home (transport, remittances)remittances)
- places of cultural exchange- places of cultural exchange
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Facilitating Facilitating the stay:the stay: supporting institutions supporting institutions in the receiving societyin the receiving society
networks of local population,networks of local population, charities, trade unionscharities, trade unions Ambivalent social policies and informal Ambivalent social policies and informal
practicespractices
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Answer to the Challenge of Answer to the Challenge of Migration TheoriesMigration Theories
Macro-economic differentials:Macro-economic differentials: informal economy informal economy plays a role in migration to poorer countries of the plays a role in migration to poorer countries of the EUEU
Migration systems:Migration systems: IE acts as a connector between IE acts as a connector between the sending and the receiving countries in the the sending and the receiving countries in the absence of previous tiesabsence of previous ties
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Dual Labour market:Dual Labour market: IE provides access to the IE provides access to the receiving labour marketreceiving labour market
Network theoriesNetwork theories: migration is enabled not : migration is enabled not merely by networks, but by the migration merely by networks, but by the migration institutionsinstitutions
Answer to the Challenge of Answer to the Challenge of Migration TheoriesMigration Theories
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ConclusionsConclusions I I focused specifically on the focused specifically on the labour migrationlabour migration from from
Ukraine, leaving other migrations aside;Ukraine, leaving other migrations aside;
explained that this labour migration is facilitated by explained that this labour migration is facilitated by the system of the system of interacting informal economiesinteracting informal economies, and , and focused only on the focused only on the emergence emergence on this migration.on this migration.
Why is this important? Because labour migration is Why is this important? Because labour migration is going to increase in the globalized world, so the going to increase in the globalized world, so the investigation of this case might shed light on other investigation of this case might shed light on other cases of migration.cases of migration.
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