Migration and Irregular Work Judit Juhász Panta Rhei Social Research Bt. Budapest Tel./fax: +(36-1)...
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Transcript of Migration and Irregular Work Judit Juhász Panta Rhei Social Research Bt. Budapest Tel./fax: +(36-1)...
Migration and Migration and Irregular Irregular WorkWork
Judit JuhászJudit Juhász
Panta Rhei Social Research Bt.
Budapest
Tel./fax: +(36-1) 200-1942
E-mail: [email protected]
DebatesDebates
EEconomic, social and political conomic, social and political significancesignificance
RegulationRegulation Possibilities of measurementPossibilities of measurement
Diversity of definitions Diversity of definitions different different estimatesestimates
Lack of elaborated methodologyLack of elaborated methodology
conceptual conceptual uncertainuncertainityity
Problems of definition, Problems of definition, terminologyterminology
IllegIllegal/irregularal/irregular migr migrantant workerworker
Legal categoryLegal category Economic determinationEconomic determination socio-demogrsocio-demographicaphic interpretationinterpretation
Same activity might be qualified/classified Same activity might be qualified/classified differently differently
informal economy
informal economy - all economic activity which is not officially reported,
registered is neglected when calculating the GDP of the economy.
irregular employment„black labour” :
•Employers fail to register their employees (evading taxes and contributions)
•Employees accept the omission of registration, (and fail to pay their taxes and contributions)
•the employee does not report that they are not entitled to unemployment benefits (as they are working);
•employing foreigners without a permit
“Grey labour” :•registered labour, where the actual employment differs from
prescribed conditions. (eg. registering at minimum wage,, but in practice paying more, and the difference is transferred tax-free from pocket to pocket. )
MethodologyMethodology Secondary analysis of existing informationSecondary analysis of existing information ( (research, research,
literature, statistical data, pressliterature, statistical data, press)) EmpiriEmpirical researchcal research
Expert surveys (Delphi method combined Expert surveys (Delphi method combined with a standard questionnaire) – 303 with a standard questionnaire) – 303 respondentsrespondents
In-depth interviews (experts, migrants, employers)In-depth interviews (experts, migrants, employers)
35 experts:
16 governmental bodies
6 local governments
4 members of parliament
4 trade unions and 3 unions
2 organisations for Hungarians living beyond the borders
42 foreign emloyees
6 Hungarian employers
Mailed and filled in by the experts themselves
ScaleScale
EU: EU: 7-16% of GDP 7-16% of GDPHungary.:Hungary.: 20-30% of GDP 20-30% of GDP
Public opinion:Public opinion:part of everyday normspart of everyday norms Black work: 37% does not strictly
condemn 28% would take part
The The proportionproportion of illegal of illegal work work
in the whole economy: 25-30% in the whole economy: 25-30% ~1,000,000 ps~1,000,000 ps.. Within this 15-20% is from foreigners. Within this 15-20% is from foreigners. (2000: (2000:
30%)30%) The range of the estimates is large: The range of the estimates is large: 30% of experts:30% of experts: less than 20 thousand, less than 20 thousand, 30% 30% :: more than 100 thousand. more than 100 thousand.
Average:Average: panel: panel: 115,000 fő115,000 főentire sample: 80,000 főentire sample: 80,000 fő
CausesCauses
high level of taxation and labour costs high level of taxation and labour costs high social acceptability of irregular workhigh social acceptability of irregular work weak internal mobility weak internal mobility difficulties of getting permits difficulties of getting permits
the basic problem relates not to foreigners the basic problem relates not to foreigners but to irregular employment in generalbut to irregular employment in general
EffectsEffectsPositive• a possibility to fill less attractive and poorly paid
jobs. (70%)
• With With flexibility and low wages contribute to the flexibility and low wages contribute to the economic development.economic development. ( (45%45%))
Negative
• loss of taxes and revenuesloss of taxes and revenues• distortion of competition distortion of competition • it affects the social insurance system negativelyit affects the social insurance system negatively• conserves poor working conditionsconserves poor working conditions
Past trendsPast trends
2
2,5
3
3,5
4
4,5
5
1990 - 1995 1995 - 2000 2000 - 2005 EU csatlakozás(2004) óta
Magyarország
Ausztria
Csehország
declining trend of increase
Future trends (expectations)Future trends (expectations)
The rate of growth is decreasing on
According to the estimations after 5-10 years the growth stops
Period 1 strongly decrea
ses
2 3 4 5 strongly increas
es
N Mean
Distribution of answers (panel) panel all resp.
next 5 years --- 7.8 66.7 23,5 2.0 51 3.2 3.0
next 5-10 years 2.9 34.3 31.4 27.1 4.3 70 3.0 2.8
Composition by citizenship and Composition by citizenship and nationalitynationality
90% from the neighbouring countries, 60% 90% from the neighbouring countries, 60% HungarianHungarian
Citizenship Of which Hungarian
Transylvanian Hungarians 38
RO 55 69Transylvanian Romanians 12
Romanian Gypsies 5
Transcarpathian Hungarians 12UA 18 64
Ukrainians 6
Hungarians from SK 6SK 8 72
Slovaks 2
Hungarians from Ex-Yugoslavia 4YU 6 73
Non-Hungarians from Ex-Yugoslavia 2
Chinese 8 8
Other 5 5
Together 100 100 59
Illegal work and Illegal work and qualificationqualification
Qualification requirement of irregular labour (% of unqualified work)
Hungary Austria (from all countries)
Austria (from EU-8)
Construction 62.5 87.0 48.0
Agriculture 91.7 95.7 87.0
Catering, entertainment 45.1 69.2 37.5
Industry 31.0 63.6 41.7
Households (care) 59.4 54.2 42.3
Households (cleaning, repair) 88.6 100.0 100.0
SectorsSectors
Construction Construction – need for qualified and – need for qualified and unqualified workersunqualified workers
Agriculture Agriculture – seasonal works, multitudinous – seasonal works, multitudinous need for labour forceneed for labour force
Catering and entertainmentCatering and entertainment Trade, vendingTrade, vending TextilesTextiles Households Households Highly qualified emloyees Highly qualified emloyees
Employment by sectorsEmployment by sectors
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Employed
according to
Population census
2001
Foreigners
employed according
to Population
census 2001
Employed in 2005 of which foreigners
with work permit
Other, unknown
Electricity, gas
Public administration
Mining
Financial intermediation
Education
Transport
Real estate, renting and business
Health
Agriculture
Other community, social and personal services
Trade
Manufacturing
Construction
Source: HCSO, National Employment Office
Foreign or Domestic Irregular Foreign or Domestic Irregular Labour?Labour?
Is there any difference?Is there any difference?not different (1) slightly different (2) essentially different (3) Mean N
Distribution of answers (%)
Type of work 48.7 29.5 21.8 1.7 78
Conditions of work 36.4 42.9 20.8 1.8 77
Quality of work 52.6 32.1 15.4 1.6 78
Type of work (2000*) 47.2 30.9 21.9 1.7 178
Advantages of foreign irregular labour (%)Advantages of foreign irregular labour (%)most important one of the two most
importantConsidered as an
advantage in 1999
advantage(s)
There’s no Hungarian labour 34.4 42.6 8.0
Lower salaries 52.5 70.5 41.1
They’re more undemanding towards working-conditions
9.8 49.2 37.9
The supply is more flexible 2.5 32.8 9.5
N=61
Labour-market competitionLabour-market competition
mean*
Foreigner are formally employed in jobs requiring lower qualification but in reality their qualifications are used
3.7
Unemployed Hungarians in general do not want to work when sent to a workplace, they just ask for the certification needed for getting unemployment benefit
3.3
Irregular employment of foreigners pushes down wages 3.3
The works done by foreign irregular workers Hungarians would not do 3.2
Employers prefer native irregular workers to foreigners 3.0
Cheap foreign irregular labour makes harder the employment of native unemployed 2.8
Foreigners take away jobs from Hungarians 2.1
* 1-Fully disagree, 5-Fully agree
Why?Why?Reasons for the irregular emlpoyment of foreigners in generalReasons for the irregular emlpoyment of foreigners in general
Munkáltatók Munkavállalók
The role of factors (distribution of answers, %) Considers as
most important (%)
1-no role at all
2 3 4
5-very important role
Mean
Taxes and charges on labour are higher
than in other countries in the region2.5 7.6 21.5 30.4 38.0 3.9 15
black work in general is widespread and
widely accepted2.5 6.3 30.0 33.8 27.5 3.8 20
Internal labour mobility is rather weak 2.5 7.6 29.1 27.8 32.9 3.8 19
Issuing permits is slow and difficult 3.8 12.5 26.3 27.5 30.0 3.7 8
The regulation of seasonal and occa-
sional work of foreigners is ineffective
7.5 12.5 26.3 30.0 23.8 3.5 5
Regulation and sanctioning is not strict
enough15.2 13.9 19.0 26.6 25.3 3.3 14
Control is weak 12.5 12.5 31.3 23.8 20.0 3.3 3
Entering Hungary is too easy (as a
tourist)16.5 11.4 20.3 29.1 22.8 3.3 7
Recovery of fines is not appropriate 12.5 17.5 26.3 31.3 12.5 3.1 8
Getting the permits often requires bribing 29.9 26.0 32.5 6.5 5.2 2.3 1
Why?Why?
Tax evasion
Getting around the Labour Code
Low er w ages
Diff iculties of legal employment
Foreigners are more undemanding tow ards their w ork-conditions
Hungarians are unw illing to take up
given w orkMore f lexible possibilities
(employment, f iring)
Foreigners are more mobile
Lack of domestic labour w ith appr.
qualif ication
Bad conditions in the country of origin
This is the way, one can earn more
Administration is complicated, long
and inflexible
Existing networks, connections
This is the only way to get work
Geographical proximity
Lack of information on legal
employment possibilities
Rules are not known enough
Language knowledge
The main reason for The main reason for employing foreigners employing foreigners irregularly (panel)irregularly (panel)
Reasons for workersReasons for workers
Reasons of migrationReasons of migration
Why HungaryWhy Hungary?? Distance, knowledge of the language, simplicityDistance, knowledge of the language, simplicity Relatives and aquaintances in HungaryRelatives and aquaintances in Hungary Hungarian nationality, emotional reasonsHungarian nationality, emotional reasons Almost a mother country (related to other Almost a mother country (related to other
countries)countries)
Personal motivesPersonal motives Providing existencial needsProviding existencial needs Looking for adventure, getting rid of the tiesLooking for adventure, getting rid of the ties Long-run plans, existance, substantiating the careerLong-run plans, existance, substantiating the career
ConditionsConditions
Conditions for work – lack of safety; high Conditions for work – lack of safety; high intensity of work; working overtimeintensity of work; working overtime
wages – usually but not always worse wages – usually but not always worse than for the Hungariansthan for the Hungarians
Conditions for housing – cheapConditions for housing – cheap
The employees are losers in this dealThe employees are losers in this deal
Accommodation of Romanian irregular workers at the edge of Budapest
The accommodation inside
„They are rather grateful for it ”
Ways out
reduction of costs and difficulties of legal employment increase the flexibility of regulation
This includes the adoption of differentiated exceptions aiming at the “whitening” of the informal economy and black labour
decentralizing the decision making mechanism based on the principle of subsidiarity and increasing the capacity and effectiveness of the administration
efficient enforcement of the existing legislation on the basis of clearly stated political aims and commitment, supported by appropriate organisational, human and financial resources
vocational training well conceptualized, close European cooperation