Regional economic losses from excluding Roma women from labour market in Serbia

Abstract

In this paper, we calculate the economic costs of labour market exclusion of Roma women at the NUTS 2 level in Serbia in terms of output and fiscal benefits. The approach relies on the analysis of a scenario in which there are no differences in the level of wages or in labour force participation and employment rates between Roma and non-Roma labour market participants. We use Labour Force Survey (LFS) data from 2019 as a basis for the comparison of the Roma and non-Roma in terms of expected gross earnings for working-age individuals provided they are employed. The results show that the total economic loss (output + fiscal) due to the exclusion of Roma women from the labour market in Serbia amounts to about 197.7 million euros on an annual basis. Of that, 70.5% (139.3 million euros) come from output/productivity losses, and 29.5% (58.4 million euros) from fiscal losses. The largest contribution to total economic losses comes from the South and Eastern Serbia region (37.25%), followed by the Vojvodina region (28.25%), the Belgrade region (24.03%) and the Šumadija and Western Serbia region (10.46%).