Irregular Migrant
Work in Austria
A Delphi Study Approach
Presentation at the conference „International
Migration and Illegal/Irregular Working Activities of
Migrants in the Czech Republic and Central Europe“,
Prague, 10.10.2005
Presentation by:
MIGIWE Austria Team
Christina Hollomey, Michael Jandl,
Veronika Bilger, Sandra Gendera and Anna Stepien
Outline
1. The MIGIWE project & definitions
2. The Delphi method- description
3. Results - General points
4. Results - Specific sectors
5. Results - Policy Conclusions
6. Q & A
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1. MIGIWE – Migration and
Irregular Work in Europe
Research project carried out by ICMPD, Vienna
 Financed by Austrian Science Foundation FWF
 Duration: Feb. 2005 – Feb. 2007
 Collaboration with CZ and H
-
Literature research
Expert interviews
Delphi survey
Migrant interviews
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1.1. Definition of IMW
IMW comprises all paid work of foreigners (nonnationals), that conflicts with one of the existing
national laws and regulations, that regulate access
to the labour market, duties for employers (and
employees), working conditions, and workers’
rights.
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1.2. Many Forms of Irregularity
1. „Illegal“ work (against foreign employment and
residence laws)
2. Non- registration at social insurance institutions
3. Non- registration at tax institutions
4. Insufficient registration of employment contract
5. “Pseudo- self-employed“
6. “Pseudo- companies“
7. …
8. …
9. …
10.…
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2. The Delphi Method
 … is a multi-stage qualitative survey
method that enables an anonymous
communication process, allowing
feedback, within a group of experts to
assess ...
- ... Complex social and economic
phenomena
- … Future developments
- … Policy measures
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2.1. Delphi Implementation:
Multi-stage
2 ½ Delphi rounds: expert interviews,
Delphi 1 & 2
- Experts from various fields and 3 regions
- 1st Questionnaires by e-mail
- Feedback (anonymous)
- 2nd Questionnaires by e-mail
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2.2. Delphi Implementation
Panel of Experts
The results reflect the kind of experts chosen!
Institutional Background of
Experts
Delphi I
Delphi II
12
8
Non-Governmental
8
5
Social Partnership Interest Groups
7
3
Research (Migration/Labour
Market)
10
6
TOTAL
37
22
Total Questionnaires sent out
60
37
Governmental
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3.1. Factors that influence
IMW
89
73
64
60
46
46
41
ent
sin
ess
Cy
cle
Bu
We
alth
27
Lev
el o
f
act
ors
gra
ph
ic F
n
38
De
mo
Lib
e ra
lisa
tio
lati
on
De
reg
u
n
Fle
xib
ilis
atio
32
em
plo
ym
50
57
54
Un
67
n
100
90
80
70
60
50
40
30
20
10
0
G lo
bal
isa
tio
% agreeing
Evaluation of various factors that favour Irregular Migrant Work in Austria
(% of Experts agreeing in Delphi I und II)
Delphi I
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Delphi II
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3.2. Evaluation of Motives for
Employers to engage IMWs
1. Saving social security and tax
contributions
2. Lower wage rates
3. …
4. …
5. …
- NOT: administrative obstacles for
regular hiring
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3.3. Access to IWM
1. Most important
Social networks (families, friends, previous
employment contacts, ethnic communities)
2. Important in some sectors
Professional agencies (labour brokers, membership
associations, sub-contractors)
3. Less important
Individual strategies (street labour markets, door-todoor search, newspaper ads)
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3.4. Quantitative Estimations
- Continuous increases since 1990 seen,
more since 2004
- Highest share of IWM seen in
construction, tourism/catering and
agriculture; high estimations for private
households (care/cleaning)
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3.5. Future Scenarios
1. IMW will continue to grow
End of transitional arrangements with EU-8
New round of enlargements (Rum,Blg,..)
2. Stronger segmentation of labour market
-according to qualifications
- according to ethnic background
3. Substitution effects
EU-8 workers will shift to the regular labour market
New EU nationals (Rum, Blg.,..) will replace them as
irregular workers
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4. Sector-specific
characteristics of IMW
 Construction
 Domestic Services- Care
and Cleaning
 Agriculture
 Tourism/ Catering
 Industry
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4.1. The Construction Sector
4.1.1. Quantitative Estimates
%
Estimated Proportion of IMW in the
Construction Sector
35
30
25
20
15
10
5
0
30
15
10
Minim um
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Average
Maxim um
15
4.1.2. Motives of employers
 Competition
- Sub companies
 Saving of costs
- Social insurance contributions
 Violation of worker’s rights
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4.1.3. Forms of irregularity
 Pseudo-self-employment
 Pseudo-companies
 Working without residence or working
permit
 Non-registration at social insurance
institutions
 Violation of employment rights
 Violation of trade regulations
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4.1.4. Social characteristics
 Highly diversified occupational profile
Gender
Balance
Male
Countries
of Origin
PL
Ex- Yug.
Tr, SK,H,
RO
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Level of
Qualification
Occupational
Profile
EU 8:
middle
EU-8:
Other
Foreigners:
low
Other
Foreigners:
unskilled
unskilled and
skilled
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4.1.5. Political Framework
 Narrowing legal regulations
 „Sozialbetrugsgesetz“-
Laws against organised social
contributions fraud
 Criminalization of pseudo-companies
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4.2. The Domestic Sector –
Care Work
4.2.1. Quantitative Estimates
Estim ated Num ber of Irregularly Working Carers
in Private Households
60.000
50.000
50.000
40.000
29.000
30.000
15.000
20.000
10.000
-
Minim um
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Average
Maxim um
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4.2.2. Motives of employers
 Saving of costs
 Non- availability of affordable regular
care services
 Lack of legal possibilities
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4.2.3. Forms of Irregularity
 Non- Registration
- Working without working (and/or
residence) permit
- Non- registration at social insurance
institutions
- Non- Registration at tax institutions
 Organisation in agencies
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4.2.4. Social Characteristics
 High level of qualification and
occupation
Gender
Balance
Female
Countries
of Origin
SK
CZ
PL
H
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Level of
Qualification
Occupational
Profile
EU 8: middle and EU-8: skilled and
high
unskilled
Other
Foreigners:
low and middle
Other
Foreigners:
unskilled and
skilled
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4.2.5. Political Framework
 Right on privacy protection
 Debate on „Pflegenotstand“ (Lack of
affordable care services)
- Temporary order for non-sanctioning
- Debate on regularization
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5. Policy Conclusions
 Feasibility
 Desirability
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5.1. Feasible AND Desirable
Access to the labour market
Feasibility
and legal regulations
Desirability YES NO
Highly demanded professions
Feasibility
YES NO
YES
Desirability YES
People with long-term residence Feasibility
permit status
YES
Combination of residence and
employment status (esp.
Asylum seekers)
YES
Desirability YES
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Feasibility
Desirability YES
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5.1. Feasible AND Desirable
Support, Incentives,
Feasibility
YES
NO
Sanctions
Desirability
YES
NO
Support of irregularly working
migrants (consultancy
services, labour unions,
legalizations)
Feasibility
YES
Desirability
YES
Facilitation of recognition of
certifications
Feasibility
YES
Desirability
YES
Restrictions for employers
(Suspension from awarding of
public contracts)
Feasibility
YES
Desirability
YES
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5.2. Not Feasible AND Not
Desirable
Feasibility
YES NO
Desirability YES NO
Termination of EU transitional
periods
Feasibility
NO
Desirability
NO
Reduction of minimum wages
Feasibility
NO
Desirability
NO
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5.3. Feasible vs. Desirable
Feasibility
YES
NO
Desirability
YES
NO
Liberalization of Labour Legislation Feasibility
(low-wage jobs)
Desirability
YES
NO
YES
Reinforcement of controls by
modern technologies (e.g.:
biometric data)
Feasibility
Sanctions/ penalties against
irregularly employed migrants
Feasibility
Desirability
NO
Skimming off of irregularly
generated profits of employers
Feasibility
NO
EU- wide framework
(harmonization of legal framework,
increased cooperation)
Feasibility
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Desirability
Desirability
Desirability
NO
YES
YES
YES
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Questions
Thank you for your attention!
Christina Hollomey, Michael Jandl,
Veronika Bilger, Sandra Gendera and Anna Stepien
Presentation by:
MIGIWE Austria Team