Academia de Studii Economice Bucuresti

Amfiteatru Economic
Facultatea de Business si Turism

Productive Employment in Romania: A Major Challenge to the Integration into the European Union

Author:Emilia Herman

JEL:O47, J21


Keywords:productive employment, integration, inclusive growth, Romania, labour productivity, working poverty, EU

It is widely accepted that productive employment represents an essential element of inclusive economic growth, and it can be a driving force in reducing gaps between countries (especially experienced by productivity and income) in order for these to integrate into the European Union. The aim of the article is to highlight the process of integration from the perspective of productive employment and its main determinants, in Romania, in the period following accession to the EU and integration into the European economic structures, the 2007-2014 period respectively. The results of this paper highlight a low level of productive employment in Romania determined mainly by low labour productivity, low wages, high vulnerable employment, high and inefficient employment in agriculture and a low level of employment in knowledge-intensive activities. The existence of large gaps, in terms of productive employment and economic development, between Romania and the developed EU countries, as well as the existence of the highest in-work poverty risk in EU emphasizes the need to accelerate productivity growth, which requires a real structural transformation, a shift from low-productivity sectors to high-productivity sectors. However, it is very important that poor workers should significantly benefit from the gains in labour productivity. The findings of this study can be useful for policy makers in order to support the improvement of productive employment so that productive employment contributes efficiently to the real integration of Romania into the EU.
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