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Education and labour market performance in Romania. An empirical analysis of the urban-rural gap

Author

Listed:
  • Mirela Cristea

    (University of Craiova, Craiova, Romania)

  • Grațiela Georgiana Noja

    (West University of Timisoara, Timisoara, RomaniaAuthor-Name: Teodora Andreea Găinaru (Olah)
    University of Craiova, Craiova, Romania)

Abstract

As education is the foundation of a prosperous and sustainable society and given the increasingly visible gap between urban and rural, the aim of the research undertaken in this paper is to present the level of education and labour market integration in Romania, in a comparative urban-rural approach. The dataset compiled for Romania is organized in two sub-panels, urban and rural, including indicators of the education system, but also fundamental credentials of the labour market, for the period 2000-2020. The research methodology is based on the application of two advanced econometric models, namely spatial models (lag and error) and Gaussian graphical models (GGMs). The results highlight the coordinates of the Romanian education system in the two areas of residence, urban-rural, but also the link between education and the labour market outcomes. Based on our findings, we propose adequate strategies to mitigate the gap between rural and urban and enhance the labour market performance.

Suggested Citation

  • Mirela Cristea & Grațiela Georgiana Noja, 2022. "Education and labour market performance in Romania. An empirical analysis of the urban-rural gap," Journal of Financial Studies, Institute of Financial Studies, vol. 12(7), pages 89-104, May.
    • Handle: RePEc:fst:rfsisf:v:12:y:2022:i:7:p:89-104
    DOI: 10.55654/JFS.2022.7.12.07
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    References listed on IDEAS

    as
    1. Jian Zhang & Songqing Jin & Maximo Torero & Tao Li, 2018. "Teachers and Urban-Rural Gaps in Educational Outcomes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 1207-1223.
    2. Ramona Pirvu & Lili Tenea, 2021. "Health, Education And Culture In Rural Areas Of Romania. Regional Analysis," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 165-175, August.
    3. Assoc. Prof. Raluca Dracea Ph. D & Assoc. Prof. Mirela Cristea Ph. D & Assoc. Prof. Narcis Mitu Ph. D, 2010. "Contribution of Education Funding to Economic Growth in Romania," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(38), pages 1-11, May.
    4. Alexandru Pavel & Octavian Moldovan, 2019. "Determining Local Economic Development in the Rural Areas of Romania. Exploring the Role of Exogenous Factors," Sustainability, MDPI, vol. 11(1), pages 1-24, January.
    5. Wang, W., 2018. "Wage premium, functioning labor markets, and the role of education: Evidence from rural China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276942, International Association of Agricultural Economists.
    6. Philip Cooke & Loet Leydesdorff, 2006. "Regional Development in the Knowledge-Based Economy: The Construction of Advantage," The Journal of Technology Transfer, Springer, vol. 31(1), pages 5-15, January.
    7. Adesuwa Vanessa Agbedahin, 2019. "Sustainable development, Education for Sustainable Development, and the 2030 Agenda for Sustainable Development: Emergence, efficacy, eminence, and future," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(4), pages 669-680, July.
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    More about this item

    Keywords

    education; labour market; urban-rural; econometric modelling.;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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