Labour market deficits in Romania. A regional approach

Dorel Ailenei (), Marius Marinas and Dobre Mihaela-Hrisanta

ERSA conference papers from European Regional Science Association

Abstract: The labour market is strongly segmented, being normally characterized by the coexistence of two forms of deficits: the labour demand deficit (i.e. unemployment) and the labour offer deficit (i.e. vacancy jobs). As these deficits are obvious in the case of some different occupations or of some different regions, then they will have a weak compensation. Between 2005-2008 these deficits are increasing at Romanian regions level. The most important of them are in Public administration, and Education. On regions the most importants deficits are in Bucharest-Ilfov (the richest) and North-East (the poorest). On Occupation group the biggest deficits is for specialists with intellectual and scientific occupations. There is also a trend of increasing for labour market defficits on regional level. The most important regional deficits are in: North-East, West and Bucharest-Ilfov. On regions the most important deficits are for Farmers and skilled workers in agriculture, forestry and fishery in Bucharest-Ilfov (gravitational effect) and South-West: specialists with intellectual and scientific occupations: West,and Bucharest-Ilfov; workers for maintenance and adjustment: North-East. There is a negative relation between the two deficits, so that the rate of unemployment tends to get decreased below the level of the natural unemployment and the rate of the vacancy will get increased during the periods when a strong economic growth is recorded; the inverse relation has been represented within the "Beveridge curve". This study is to confirm the validity of the Beveridge curve for Romania during the period between January 2004 and June 2009, using the monthly data. The estimated model has been a VAR type one, in which the two variables have been represented as first differences with 3 time lags.

Date: 2011-09
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