World Bank Report: The Economic Cost of Roma Exclusion in Europe

Roma are the poorest social group frequently excluded from the European labour market.

World Bank Report: The Economic Cost of Roma Exclusion in Europe

This study presents the first findings of a study conducted by the World Bank in recent years to calculate the economic costs of Roma exclusion.

Roma are the largest transnational minority in Europe. They are also the poorest social group frequently excluded from the European labour market. This study aims to analyse the economic and financial losses caused by Roma exclusion from the labour market in four countries in Central and Eastern Europe (Bulgaria, the Czech Republic, Romania and Serbia).

The very low employment and low income of Roma impose an economic cost on Europe. This is because low incomes lead to lower tax revenues and higher social security spending. To estimate the economic and financial costs, representative survey data from country-levels and official Roma population data from censuses are used. According to national population data, there are 370,000 Roma in Bulgaria, 535,000 in Romania, 108,000 in Serbia and 70,000 in the Czech Republic. However, other estimates suggest that the Roma population in these countries is two to four times larger. The economic and financial costs of Roma exclusion are even more severe when considering the shrinking and rapidly ageing population. Between 2000 and 2025, the population of Bulgaria is expected to decline by 18%, the population of the Czech Republic by 5%, the population of Romania by 10% and the population of Serbia by 3%. It is also assumed that the elderly population aged 65 and over in these countries will increase significantly. These factors will create an additional burden on the working-age population (15-64 years old) and cause this group to shoulder greater financial responsibilities (such as retirement expenses and healthcare costs). To prevent this, the working-age population in all segments of society must be fully integrated into the labour market. In many European countries, the Roma population constitutes a large share of the working-age population (including these four European countries). This share will increase when the young Roma population is taken into account. The large-scale participation of the Roma in the labour market and the increase in productivity are economic requirements for everyone.

You can access the full text of the report in English at the following link:

http://siteresources.worldbank.org/EXTROMA/Resources/Economic_Costs_Roma_Exclusion_Note_Final.pdf