Long-run Economic, Budgetary and Fiscal Effects of Roma Integration Policies
Andrey Ivanov () and
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Andrey Ivanov: European Union Agency for Fundamental Rights, http://fra.europa.eu/en
No 2018-07, Working Papers from Joint Research Centre, European Commission (Ispra site)
Although, the need for an efficient Roma integration policy is growing in Europe, surprisingly little robust scientific evidence regarding potential policy costs and expected benefits of alternative policy options has supported the policy design and implementation so far. The present study attempts to narrow this evidence gap and aims to shed light on long-run economic, budgetary and fiscal effects of selected education and employment policies for the inclusion of the marginalised Roma in the EU. We employ a general equilibrium approach that allows us to assess not only the direct impact of alternative Roma integration policies but also to capture all induced feedback effects. Our simulation results suggest that, although Roma integration policies would be costly for the public budget, in the medium- to long-run, economic, budgetary and fiscal benefits may significantly outweigh short- to medium-run Roma integration costs. Depending on the integration policy scenario and the analysed country, the full repayment of the integration policy investment (positive net present value) may be achieved after 7 to 9 years. In terms of the GDP, employment and earnings, the universal basic income scenario may have the highest potential, particularly in the medium- to long-run.
Keywords: Roma; social marginalisation; education; labour market; integration policy; universal basic income (search for similar items in EconPapers)
JEL-codes: I32 J6 J11 J24 O17 O43 (search for similar items in EconPapers)
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Published by Publications office of the European Union, 2018
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Working Paper: Long-run Economic, Budgetary and Fiscal Effects of Roma Integration Policies (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:jrs:wpaper:201807
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