3.1. People at Risk of Poverty
In the following section, we deal with the inequality between the domestic and immigrant populations in the area of poverty risk in EU countries.
Table 1 provides descriptive statistics on the indicator people at-risk-of-poverty or social exclusion in 2010 and 2018 by broad group of citizenship (people at-risk-of-poverty or social exclusion by “foreign” in the year 2010 (ROP-F10) and people at-risk-of-poverty or social exclusion by “foreign” in the year 2018 (ROP-F18), people at-risk-of-poverty or social exclusion by “nationals” in the year 2010 (ROP-N10) and people at-risk-of-poverty or social exclusion by “nationals” in the year 2018 (ROP-N18)). We excluded Romania from the 28 EU countries due to the unpublished data.
The average value of the indicator people at-risk-of-poverty or social exclusion in the analyzed years was significantly higher in the “foreign” group of countries than in the “nationals” group. The variability expressed by the standard deviation of the indicator at-risk-of-poverty or social exclusion was higher in the group “foreign” than in the group “nationals”. The variability expressed by the coefficient of variation of the indicator at-risk-of-poverty or social exclusion was lower in the group “foreign” at the beginning of the analyzed period and higher at the end of the period than in the group “nationals”. In both groups, there was a decrease in average values in the analyzed period.
There was an increase in variability in the group “foreign”. On the contrary, there was a significant decrease in variability in the group “nationals”. Thus, from 2010 to 2018, EU countries differences between countries within the group of “nationals” have decreased. On the contrary, differences between countries within the group of “foreign” have increased. In our view, variability has increased, mainly because the number of immigrants from third countries has increased significantly in countries being detention centers for immigrants. These countries were not able to react quickly to the situation.
Descriptive statistics suggest that the average of the indicator people at-risk-of-poverty or social exclusion for both groups is declining within the EU. We can consider this development positive. The degree of variability decreased in the group “nationals”. On the contrary, it increased in the group “foreign”. The increase in variability in the group “foreign” indicates an increase in differences among EU countries.
In order to find out how the differences in the values regarding the indicator in the two analyzed groups have developed, we also expressed descriptive statistics regarding the differences at the beginning and at the end of the analyzed period. Descriptive statistics on differences in the indicator people at-risk-of-poverty or social exclusion are presented in
Table 2. ROP-D10 is differences of the indicator people at risk of poverty or social exclusion in the year 2010 (“foreign”–“nationals”), ROP-D18 is differences of the indicator people at risk of poverty or social exclusion in the year 2018 (“foreign”–“nationals”).
The average value of the differences between the two groups dropped. The variability of differences expressed by the coefficient of variation increased slightly.
In the next step, we analyzed the specifics of the indicator people at-risk-of-poverty or social exclusion in the two analyzed groups in EU countries. In most EU countries, the value of indicator people at-risk-of-poverty or social exclusion was higher in the group “foreign” than in the “nationals” group of countries. The lower value of the indicator people at-risk-of-poverty or social exclusion within the group “foreign” in 2010 was in two countries—Bulgaria and Hungary. In 2018, the value of the indicator people at-risk-of-poverty or social exclusion was lower within the “foreign” group of countries in Poland. The reason for the lower value of the indicator people at-risk-of-poverty or social exclusion within the group “foreign” is, in our opinion, the fact that in 2010 these countries did not indicate a significant shortage of labor. They did not focus significantly on migration policies aimed at large-scale labor recruitment. In these countries, a significant proportion of people within the group “foreign” was above the average wages level.
There are significant differences among EU countries within the levels of indicator people at-risk-of-poverty or social exclusion and the differences between the groups. The value of the indicator people at-risk-of-poverty or social exclusion in EU countries in the two analyzed groups are shown in
Figure 1 and
Figure 2. The Czech Republic had the lowest values of the indicator people at-risk-of-poverty for “foreign” countries group in 2010 and 2018. The lowest values of the indicator people at-risk-of-poverty or social exclusion for “nationals” group of countries had in 2010 Luxembourg and in 2018 Czechia. The low value of the indicator people at-risk-of-poverty in the Czech Republic indicates a well-established social system. At the same time, in our opinion, the low value of the indicator people at-risk of poverty or social exclusion within the group “foreign” is also a consequence of the fact that many people from the Slovak Republic work in the Czech Republic. The advantages are similar cultural values, mentality and familiar languages. At the same time, the education system in the Czech Republic is open to Slovak citizens. They have the same approach to education as Czech citizens. That was the reason that made a large part of intelligence from the Slovak Republic remain working in more economically efficient the Czech Republic.
The biggest difference between the two groups was in 2010 and 2018 in Sweden. Sweden was opened to immigrants. According to Denník N (2016) [
32], the country is considered one of the most open. Many immigrants with minor children moved to the country. However, the country did not manage the large waves of immigrants. In 2016 Sweden began to tighten its migration policy. The country has moved to expelling immigrants. The difference of indicator people at-risk-of-poverty between the groups at the people at-risk-of-poverty in Sweden is significant. It is obvious that the uncoordinated inflow of migrants has also been one of the accelerating issues when it comes to growing differences between the two groups.
Based on the differences and the dynamics of differences between the two groups by means of the basic index and the average growth coefficient calculations we can classify countries into two groups. In the group where the differences between the groups have increased are: Bulgaria, Estonia, Spain, France, Italy, Lithuania, Hungary, Malta, Netherlands, Portugal and Sweden. The largest increase in differences was in Hungary.
The group consists mainly of countries where there has been a significant increase in immigrants, both due to labor shortages and due to the large number of illegal migrants. Apart from Hungary, there was a large increase in differences in Bulgaria and the Netherlands. Hungary and Bulgaria had a negative difference at the beginning of the period. However, despite the large increase, the difference in both countries is below the average. The average annual growth of the poverty risk gap in the Netherlands was even 20%. The Netherlands had a shortage of manpower and therefore accepted a large number of immigrants. The difference between the risk of poverty within the two groups doubled during the observed period.
The second group consists of countries where differences between groups have decreased. It includes all the other EU countries. The largest decrease in differences occurred in Germany and the Czech Republic. The value of the difference between the two groups in the indicator people at-risk-of-poverty or social exclusion has dropped to about 19% in those mentioned countries.
From the above executed analysis, we can summarize that even though the average poverty risk values and their differences between the two groups of countries in EU countries are declining, the variability of the indicator people at-risk-of-poverty in the group “foreign” has increased. Differences within the indicator people at-risk-of-poverty between the groups are large, especially in countries, which have been dealing with the large increase in immigrants from third countries—outside of the EU (Sweden, Spain, Greece).
In the next step, we estimated whether the EU countries are getting closer one another in terms of indicator values differences within the two groups. For this reason, we expressed the standard deviation of the differences within the indicator people at-risk-of-poverty between the two groups in EU countries during the observed period (
Table 3).
The standard deviation within the indicator difference decreased from 2010 to 2018, but the tendency of decreasing variability was not stable during the observed period.
The largest decrease in variability was recorded from 2016 to 2017. However, the declining trend of the standard deviation of differences was not stable in the following year. In 2018, the difference variability increased slightly. In general, we can state that even though the difference variability from 2010 to 2018 decreased, the tendency the variability is to be decreased is not stable. It is also the result of uneven dynamics growth within the number of immigrants in individual EU countries.
Even though the people at-risk-of-poverty average in both groups also the average differences in indicators are declining, the variability in the group “foreign” is increasing. Inequalities within the group “foreign” have increased slightly. In our opinion, the increase in inequality was caused by the increase in the indicator people at-risk-of-poverty within the “foreign” group of countries that were very open to immigrants (e.g. Sweden) and countries with a higher risk of poverty within the “nationals” group of countries at the beginning of the observed period.
We are aware that our conclusions have certain limitations. It can be assumed that the risk of poverty depends on several factors. We consider the length of immigrants´ staying in a foreign country and the economic development of the immigrants’ domestic country to be among the most important factors influencing the risk of poverty and the employment of immigrants. In order to broaden our analysis on the specifics of immigrants on the basis of which group of economically developed countries they come from and on the basis of available data, in the next step we divided the “foreign” group of countries into two subgroups. In the first subgroup are foreign from outside the EU countries (“non-EU foreign”) and in the second group are people from EU countries outside the reporting country (“foreign from the EU”). This kind of breakdown is also available within the Eurostat database, from which we draw data offering us a deeper look at the observed issue. However, the breakdown has certain limitations. For example, not all countries in those subgroups can be considered economically developed at the same level. However, we assume that most immigrants from outside the EU are mainly from non-EU countries and from Africa [
33]. In most cases these countries can be considered less economically developed.
In the next part of our analysis, the intention is to determine the specifics of the differences between the two subgroups and the group “nationals” based on the values of the people at-risk-of-poverty or social exclusion indicator. Because of unpublished data, Bulgaria, Croatia, Lithuania, Hungary, Poland, Romania and Slovakia were excluded from the analysis.
3.1.1. Difference in the People at-Risk-of-Poverty or Social Exclusion Indicator between the “Non-EU Foreign” Group and the “Nationals” Group
The arithmetic mean of the difference between the groups of “non-EU foreign” and “nationals” decreased from 2010 (ROPA-D10) to 2018 (ROPA-D18) (
Table 4). The average level of differences therefore decreased. The highest value of the arithmetic mean in the analyzed period was in 2016.
Based on the analysis of the development of the standard deviation of the difference in the values of the people at-risk-of-poverty or social exclusion indicator between the groups of “non-EU foreign” and “nationals” (
Table 5), we can state the standard deviation decreased that from 2015 to 2017. The variability of the difference among countries decreased significantly from 2010 to 2018. We consider the trend of a decrease in the arithmetic mean of the differences and a decrease in the standard deviation to be positive. We assume that it was caused by the EU migration policy and EU subsidies provided to EU countries to handle the inflow of large number of migrants.
3.1.2. Difference in the People at-Risk-of-Poverty or Social Exclusion Indicator between the Group “Foreign from the EU” and the “Nationals” Group
From 2010 (ROPB-D10) to 2018 (ROPB-D10) the arithmetic mean of the difference between the groups “foreign from the EU” and “nationals” is significantly smaller than the arithmetic mean of the difference between the group “non-EU foreign” and the “nationals” group.
At the same time, obviously the arithmetic mean of the difference between the group “foreign from the EU” and the “nationals” group has decreased. Thus, the average level of differences decreased (
Table 6). The highest value of the arithmetic mean in the analyzed period was in 2016.
In the next step, we observed the development of the standard deviation of the difference in the values of the people at-risk-of-poverty or social exclusion indicator between the group “foreign from the EU” and between the “nationals” group (
Table 7). We can state that the development of the standard deviation was not stable. From 2010 to 2018, the variability of the difference increased. This development was also influenced by the increase in the number of EU countries that had a higher value of the people at-risk-of-poverty or social exclusion indicator in the “nationals” group than in the group “foreign from the EU”. In our opinion, this is also because immigrants from the EU mostly work to a lesser extent in work positions that are less paid and “nationals” are not interested in those work positions.
It follows from the above that by comparing the values of the differences in the indicator people at-risk-of-poverty or social exclusion between the group “non-EU foreign” and the “nationals” group and by comparing the differences in the values of the indicator people at-risk-of-poverty or social exclusion in the group “foreign from the EU” and in the “nationals” group, it is obvious that immigrants outside the EU are significantly at higher risk of poverty. At the same time, a new trend in the EU is beginning to emerge in relation to the risk of poverty; the number of EU countries with domestic population at risk of poverty being higher than EU immigrants is increasing.
3.2. Employment
In the following section, we focus on the specification of inequality between domestic and immigrant populations in the field of employment in EU countries.
Table 8 describes descriptive employment rate statistics in 2010 and 2018 by broad group of citizenship—(employment rate by “foreign” in the year 2010 (ER-F10), employment rate by foreign in the year 2018 (ER-F18), employment rate by “nationals” in the year 2010 (ER-N10), employment rate by “nationals” in the year 2018 (ER-N18)). We have excluded Romania due to unpublished data.
The average value of the employment rate indicator was lower in the group “foreign” than in the group “nationals”. In both groups, the average value increased during the observed period, being considered a positive trend. The variability expressed by the coefficient of variation has decreased in both groups.
Descriptive statistics suggests that the average employment rate for both groups is rising across the EU and the variability among EU countries is declining.
Descriptive statistics within the employment rate differences between the two groups in both two years are presented in
Table 9. ER-D10 is differences of employment rate in the year 2010 (“nationals”–“foreign”). ER-D18 is differences (“nationals”–“foreign”) of employment rate in the year 2018.
The average value of employment rate differences between the two groups has decreased. The average value of the difference was increasing from 2014 to 2015 and from 2015 to 2016. From 2016, it began to decline. It dropped below the average level of differences in 2010. Thus, especially in the last three years of the observed period, we can talk about a decrease in differences in employment rate between the analyzed groups. The variability of employment rate differences, expressed as a coefficient of variation, has increased.
In the next step, we analyzed the specifics of employment rate. The employment rate in EU countries in the two analyzed groups is presented by
Figure 3 and
Figure 4 There are significant differences in employment rate levels and in differences between the groups among EU countries. The minimum employment rate in the group “foreign” in 2010 can be seen in Croatia, the maximum in Czech Republic. The minimum employment rate in the group “foreign” was reached in 2018 in Greece, the maximum value in Czech Republic.
The minimum employment rate in the group “nationals” was reached in 2010 in Hungary, the maximum value in the Netherlands. The minimum employment rate in the group “nationals” was reached in 2018 in Greece, the maximum in Sweden. It can be implied that the employment rate in Czech Republic is very high. As we have already said, this country has a very well-established social system and migration policy. It can certainly be a good example for other EU countries.
The biggest differences in employment rate between the groups were in 2010 in Croatia, in 2018 in Sweden. In Croatia, there were observed large fluctuations in employment rate within the group “foreign”. However, at the end of the observed period, the employment rate in this group increased significantly.
The standard deviation within the employment rate difference in the two groups (
Table 10) has been declining since 2013. We consider this trend positive, along with the growing average values of employment rate in both groups and the decrease in average difference.
To broaden the analysis, we divided the group “foreign” into two subgroups, in the same way as analyzing the risk of poverty and employment rate. In the first subgroup there are foreign from outside the EU (“non-EU foreign”) and in the second group there are “foreign from the EU”. Our intention is to determine the specifics of the differences between the “nationals” group and between the two subgroups. Because of unpublished data, Romania, Croatia, Slovakia, Bulgaria, Latvia and Lithuania were excluded from the analysis.
3.2.1. Difference in the Employment Rate between the “Nationals” Group and the Group “Non-EU Foreign”
From 2010 (ERA-D10) to 2018 (ERA-D18) the arithmetic mean of the difference between the “nationals” group and the group “non-EU foreign” increased. Thus, the average level of differences has increased (
Table 11). The highest value of the arithmetic mean in the analyzed period was in 2016.
Based on the analysis of the standard deviation of the difference in the employment rate values between the “nationals” group and the group “non-EU foreign” (
Table 12), we can state that from 2013 to 2017 the standard deviation decreased. The variability of the difference among countries has decreased significantly since 2013. We do not consider the trend of increasing arithmetic mean of differences to be positive. In our view, it is also the result of an uncoordinated inflow of huge number of immigrants from the non-EU member countries.
3.2.2. Difference in the Employment Rate between the “Nationals” Group and the Group “Foreign from the EU”
The difference between the employment rate in the “nationals” group and the group “foreign from the EU” is in most cases negative. This finding is very interesting. Thus, in most EU countries, the employment rate in the “nationals” group is lower than in the group “foreign from the EU”. The arithmetic mean of the difference between the “nationals” group and the group “foreign from the EU” in 2010 (ERB-D10) and in 2018 (ERB-D18) was negative (
Table 13).
In the next step, we observe the development of the standard deviation of the difference in the employment rate values between the “nationals” group and the group “foreign from the EU” (
Table 14). We can state that the development of the standard deviation was not stable. Thus, the analyzed countries did not systematically move closer within the values of differences between the groups.
It follows from the above that by comparing the employment rate in the “nationals” group and group “non-EU foreign” and comparing the employment rate in the “nationals” group and the group “foreign from the EU”, it is clear that most EU countries have higher employment rate within the group “foreign from the EU” and vice versa most EU countries have a higher employment rate within the “nationals” group than “non-EU foreign” group. The reduction of the differences in the employment rate between the “nationals” and “foreign” groups was mainly influenced by the reduction of the differences between the “nationals” group and “non-EU foreign” group.
From the decrease in the arithmetic mean of the difference between people at-risk-of-poverty or social exclusion between the group “nationals” and group “non-EU foreign” and from the increase in the arithmetic average of the employment rate difference between the group “nationals” and group “non-EU foreign”, we can conclude that the EU subsidies helped reduce poverty risk for non-EU immigrants, however, the gap within the employment rate did not get smaller. The EU labor market was not prepared for a large unsystematic inflow of immigrants from third countries within such a short period of time (especially in 2015 and 2016).
3.3. Discussion
This study deals with the changes of inequalities within poverty and employment between domestic population and immigrants. The group of domestic population is represented by people from a reporting country (country of citizenship). The group of immigrants is represented by people from foreign countries (country of citizenship).
In our study we collected data from [
26,
27]. We have analyzed the specifics of individual EU countries, the development of changes that occurred in inequalities between the two groups in terms of poverty and employment, along with their dynamics and convergence trends. Like the Eurostat source [
34] this study also has showed that the risk of poverty or social exclusion in the EU was lower in the group of “nationals” than among immigrants.
Immigrants are therefore more at poverty risk than domestic population. The high values of people at-risk-of-poverty indicator or social exclusion are mainly in countries, where many refugees from third countries came to during the period under review (Greece, Spain). There are several reasons for that. One of the main reasons, in our view, is the fact that the social status of immigrants is significantly affected by the length of time they are staying in the country to which they have immigrated. Emigrants who are staying in the destination country for a short time are at poverty risk the most. The issue of the economic development of immigrants´ domestic country is another important factor to be assessed. After dividing the foreign group into two subgroups—“foreign from the EU” and foreign outside the EU (“non-EU foreign”), we noted that when it comes to the risk of poverty, immigrants outside the EU are more at risk. At the same time, a new trend in the EU is beginning to emerge regarding the risk of poverty; the number of EU countries with domestic population at risk of poverty being higher than EU immigrants is increasing.
In our view, EU subsidies and EU and national migration policies have played an important role that immigrants were jeopardized by the risk of poverty. Only the combination of these two elements made the risk of poverty not to be increased significantly, even with such a large increase in the number of immigrants, especially in 2015 and 2016.
Nowadays, EU migration policies are mainly focused on the acquisition of labor force. In our opinion, not only policies supporting the employment of the immigrants but also policies supporting the integration of immigrants need to be taken into account in order to decrease differences between immigrants and domestic population.
Complex integration policy for immigrants can largely help in poverty reduction and social inclusion of immigrants. Comparison of the EU countries’ immigrants inclusion policies have not been the subject of this study but can be an opportunity for further research.
During the period under review, there was also an increase in the employment rate of domestic population and immigrants. The average value of employment rate increased in both groups—“foreign” and “nationals”. However, the average value of employment rate was lower in the group “foreign” than in the group “nationals”.
However, if we observe the group “foreign” divided into two subgroups, then most EU countries have a higher employment rate in the group “foreign from the EU” than in the “nationals” group and, conversely, most EU countries have a higher employment rate in the” nationals” group than in “non-EU foreign” group. It can be concluded that, although EU subsidies have had a positive effect on the risk of poverty for non-EU immigrants in EU countries, more time was necessary to get them integrate into the labor market in terms of employment in countries with a large inflow of immigrants outside the EU. EU countries could have been negatively affected within their economic outcomes.
In our study, we point to an important phenomenon today, which is the reduction of disparities within the poverty risk and employment between the domestic population and immigrants. This is also evidenced by the decrease in the arithmetic mean of the differences in the two analyzed indicators. This trend is mainly the result of labor shortage and labor market needs. Even though governments are increasing the retirement age, in many areas there is still a shortage of labor. Immigration plays an important role within the labor shortage issue [
35]. In the study, we also deal with convergence trends. For this reason, we also expressed a standard deviation. Based on the standard deviation values, we can confirm the decrease in variability within the group “nationals” in case of both indicators. On the other hand, in the group “foreign”, in terms of the people at-risk-of-poverty indicator or social exclusion, the variability increased. Since 2013, convergence trends within the employment rate have also been confirmed based on the standard deviation values.
Within the specifics of individual EU countries, we affirmed a very good position of Czech Republic when it comes to a high employment rate in both analyzed groups as well as a low at-risk-of-poverty rate value. The employment rate in the group “foreign” was higher than in the group “nationals”. At the same time, in the analyzed period there was a significant decrease in the differences within the at-risk-of-poverty rate level between the two groups. In our opinion, this result is also because Czech Republic is also open to students from Slovak Republic in higher education. Slovak graduates from Czech universities usually stay in Czech Republic. Authors Čuhlová, Potužáková (2017) have a similar opinion [
36]. Czech Republic has an excellent position in Central and Eastern Europe in terms of its capacity for development, attraction and retaining of talent. According to Čuhlová, Potužáková (2017, p. 163) “within benchmarked categories of talent environment, openness (for example hiring of foreign nationals), quality of the labor force, proclivity to attracting talent with consideration of demographics and education, Czech Republic reached the best ranking among countries from the region of Central and Eastern Europe” [
36].
There are several factors that affect immigrant poverty and employment. However, in our study we do not deal in detail with the impact of each of them. This is the issue we would like to focus on in the next study.
In our opinion, big differences between the groups within the analyzed indicators were evident mainly in countries that had a large inflow of illegal migrants from third countries. In these countries, labor immigration has had little benefit in the short term. This statement does not deny the statement of De Luna Gallardo, Korneeva, Strielkowski [
37]. According to them if the domestic population has the same skills as immigrants, the domestic population will not benefit from immigration.