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Circumventing the State: Illegal Labour Migration from Ukraine as a Strategy Within the Informal Economy CERES Petro Jacyk Program for the Study of Ukraine.

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Presentation on theme: "Circumventing the State: Illegal Labour Migration from Ukraine as a Strategy Within the Informal Economy CERES Petro Jacyk Program for the Study of Ukraine."— Presentation transcript:

1 Circumventing the State: Illegal Labour Migration from Ukraine as a Strategy Within the Informal Economy CERES Petro Jacyk Program for the Study of Ukraine Circumventing the State: Illegal Labour Migration from Ukraine as a Strategy Within the Informal Economy Natalka Patsiurko CERES Petro Jacyk Program for the Study of Ukraine

2 2 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.

3 3   Practical: mass migration from Ukraine in to the countries of Southern Europe, accomplished within a relatively short period of time in an efficient manner. how possible is such effective migration from a previously closed country? Explanation needed: how possible is such effective migration from a previously closed country?

4 4 Ukrainian Labour Migration: a Challenge for the Conventional Migration Theories  Macro-economic differentials: why did Ukrainian migration develop to the relatively poorer corners of the EU?  Migration systems: how to explain migration to the countries with no specific previous economic, political, or cultural connections?

5 5  Dual Labour Market theory: explains migration solely within the receiving labour market. How is the matching of demand for immigrant work accomplished between Ukraine and Southern European countries?  : migrant networks facilitate migration. Still a problem with explaining the efficiency of this particular migration.  Network theories: migrant networks facilitate migration. Still a problem with explaining the efficiency of this particular migration.

6 6 Research Questions From migration theories: what other factors, except economic differentials and networks, can explain this migration? From migration theories: what other factors, except economic differentials and networks, can explain this migration? From observing the institutional problems of post-communism: is informal economy, an institutional sphere between the state and the market, conducive to the development of migration? From observing the institutional problems of post-communism: is informal economy, an institutional sphere between the state and the market, conducive to the development of migration?

7 7 Central Question: The link between migration and the informal economy

8 8 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?

9 9   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?

10 10 Data Sources and Methodology Two principal sources of my findings:  In-depths interviews (around 34 interviews) with returning and actual migrants  Conducted between 2001 and 2005  About 50% of interviewees were migrants to Italy  Snow-ball sampling appropriate for the issue of illegal migration

11 11  of actual migrants (a total of 500+questionnaires):  Two surveys of actual migrants (a total of 500+questionnaires):  one set of the primary survey data collected in Rome in 2003, 77 interviews  one set of secondary survey data, collected by an NGO from Western Ukraine, 436 interviews, among immigrants in Italy  +Additional statistics from the governmental sources, Ukrainian and Southern European; +observations of migrant institutions at work; +media accounts of migration;+ legislature on migration.

12 12 Level 1: Socio-economic Development of Migration from 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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14 14 Migration:  an economic strategy of the population in the conditions of the sharp decline of the state economy  Not an isolated instance, but a mass strategy involving millions  Distinct form of ‘employment’ between the emerging institutions of the market economy and the deteriorating institutions of the state- controlled economy.

15 Mass Strategy: Labour Migrants from Ukraine in Eastern and Western Europe

16 16 1. Migration emerged from informal economic practices of the population 2. Incomplete renegotiation of the citizen-state relationship rise of the informal economy rise of the informal economy rise of migration rise of migration Summary on Socio-Economic Origins of Migration Within the Informal Economy

17 17 3.Continuation of the ‘beating the system’, circumventing the state attitude: Centralized political management, combined with the notorious inefficiency of state-socialist economies in providing and distributing consumer goods, fostered a popular entrepreneurial culture of the opportunistic- debrouillard (rather than modern-rational) kind by forcing citizens to use ‘unofficial’ (extralegal) and ‘crony’ support networks to make everyday life possible. These coping strategies […], informed by beat-the- system/bend-the-law attitudes toward the official structures, had become ubiquitous social practice, normatively sanctioned by popular opinion. (Morawska, 2001:59)

18 18 Level 2: The Role of the States Ukrainian state: neglected migration until well into its development Ukrainian state: neglected migration until well into its development  migration policies concentrated on the migration flows inherited from the collapse of the SU, immigration and citizenship policies. -- repatriation, refugees, trafficking (out- migration of its own citizens not a priority)

19 19  Policies were delayed: -- recognition of the problem of labour migration: first and only bilateral agreement with a Southern European country (Portugal): signed 2003, ratified only  Institutional basis for policies weak: -- State Committee on Nationalities and Migration  Management of labour out-migration was de-facto delegated to NGOs and international organizations

20 20 Italian state: caught in the contradiction between the demand for immigrant work and policies to restrict migration Italian state: caught in the contradiction between the demand for immigrant work and policies to restrict migration  Informal economy: resolves the contradiction between the economic demand and restrictive policies, by creating space for immigrant incorporation.  Contradiction in policies: restricting entry and recognition of immigrants within the country, through periodic legalization campaigns.

21 Impact of Legalization Campaigns and Quota Entries on the Stocks of non- EU Residents in Italy

22 22 on the Role of States Summary on the Role of States In both states: state negligence relegates the labour migration to the sphere of informal economy In both states: state negligence relegates the labour migration to the sphere of informal economy => migration developed outside the state channels, and in avoidance of the state channels.

23 23 Level 3: The Role of the Informal Economy in Immigrant Incorporation Informal Economy: provides access to the receiving market and matches supply and demand through the mechanism of networks: Informal Economy: provides access to the receiving market and matches supply and demand through the mechanism of networks: -- Italy: demand for migrant workers in domestic services and in informal economy -- Italy: demand for migrant workers in domestic services and in informal economy

24 Gender and Age Composition of the Ukrainian Migrants in Italy, 2002 and Italy 2003 Rome Total number of workers in the survey Percent of females Average age of respondents Average age of female respondents Average age of male respondents Percent of respondents 45+ years old Percent of females 45+ years old Percent of males 45+ years old7.50

25 25 Informal economy also demonstrates efficacy and flexibility in placing migrants in the receiving market: Informal economy also demonstrates efficacy and flexibility in placing migrants in the receiving market: I actually went without knowing anything, and I did not imagine anything. Nothing, concretely speaking, I knew nothing. I found myself as if on an uninhabited island or in the open sea. I was left to flounder. When 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 out, on the spot. If I managed, fine, if not [respondent started crying], who knows...[1]

26 26 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, 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 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 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 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 impossible here to arrange visas for the States, there were no chances. 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 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 nobody, alone, by myself. I did not have any information as such. [22].

27 27 But: amounts to the of immigrants in the receiving economy, But: amounts to the disadvantaged position of immigrants in the receiving economy,  e.g. in Italy: Ukrainian immigrants are segregated in the secondary labour market:

28 Sectors of Employment of Ukrainian Workers in Italy

29 29  are mostly illegal: -- 74% in 2002 and 66% in % in 2002 and 66% in 2003  illegality diminishes wages: -- the regression analysis of immigrant earnings shows that wages are significantly lower if migrant is employed in the household sector, in the South of the country, and is illegal (the result of insertion through the informal economy)

30 30 Migration-Facilitating Institutions Level 4: Migration-Facilitating Institutions Differentiating between: Differentiating between:  Institutions facilitating the journey  Institutions facilitating the stay in the receiving societies

31 31 Institutions facilitating the journey: travel agencies and migrant networks  Informal networks webs of personal relationships providing information and help in migration  ‘Formal’ networks: travel agencies, ‘migration merchants’ provide multiple services: visa, transportation, jobs represent ‘commercialization of migration’ represent ‘commercialization of migration’

32 Trafficking vs. Smuggling Migrant’s Intentions Declared to the State Organiser’s (transporter) Intentions Towards the Migrant Correctly Declared Incorrectly DeclaredUndeclared 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

33 33 Facilitating the stay: migrant-created institutions  Informal labour market of migrants - Information about jobs - Selling jobs  Meeting points - act as physical locations of the informal labour markets - act as physical locations of the informal labour markets - establish connections with home (transport, remittances) - places of cultural exchange

34 34 Facilitating the stay: supporting institutions in the receiving society  networks of local population,  charities, trade unions  Ambivalent social policies and informal practices

35 35 Answer to the Challenge of Migration Theories Macro-economic differentials: informal economy plays a role in migration to poorer countries of the EU Macro-economic differentials: informal economy plays a role in migration to poorer countries of the EU Migration systems: IE acts as a connector between the sending and the receiving countries in the absence of previous ties Migration systems: IE acts as a connector between the sending and the receiving countries in the absence of previous ties

36 36 Dual Labour market: IE provides access to the receiving labour market Dual Labour market: IE provides access to the receiving labour market Network theories: migration is enabled not merely by networks, but by the migration institutions Network theories: migration is enabled not merely by networks, but by the migration institutions Answer to the Challenge of Migration Theories

37 37Conclusions I focused specifically on the labour migration from Ukraine, leaving other migrations aside; I focused specifically on the labour migration from Ukraine, leaving other migrations aside; explained that this labour migration is facilitated by the system of interacting informal economies, and focused only on the emergence on this migration. explained that this labour migration is facilitated by the system of interacting informal economies, and focused only on the emergence on this migration. Why is this important? Because labour migration is going to increase in the globalized world, so the investigation of this case might shed light on other cases of migration. Why is this important? Because labour migration is going to increase in the globalized world, so the investigation of this case might shed light on other cases of migration.

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