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Productivity and the Regional Employment in Services. Econometric Estimations for Romania

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Author Info

  • Jula, Dorin

    ()
    (Institute for Economic Forecasting, Romanian Academy and Ecological University of Bucharest – Economic Sciences Faculty)

  • Jula, Nicoleta

    ()
    (Nicolae Titulescu University of Bucharest – Finance and Accounting Faculty)

Abstract

Between 1989 and 2006, in Romania the labour force decreased by about 2.6 mill. persons (with regional differences), but, according to the same general tendency, the labour force in services increased by about 0.5 mill. persons. This occurred in a time when the prices in services increased more rapidly as compared to the ones in the national economy. In the paper, we found that the growth in total income leads to growth of the demand for services, so that the increase rate of services outmarch the amplification of productivity, the end-result being a growth of the employment in that sector. Also, even if in Romanian regions the demand for services is inelastic regarding the total income of the households and the dynamics of productivity in services was lower than the average of the national economy, the positive growth rate of employment in services exceeded the productivity gap between the national economy and the services sector.

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Bibliographic Info

Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): 6 (2009)
Issue (Month): 3 (September)
Pages: 129-137

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Handle: RePEc:rjr:romjef:v:6:y:2009:i:3:p:129-137

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Related research

Keywords: labour productivity; regional employment; price elasticity and income elasticity of demand for services;

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Cited by:
  1. Chilian, Mihaela Nona, 2012. "Evolution of Regional and Sub-Regional Disparities in Romania – A Sectoral Shift-Share Analysis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 187-204, March.
  2. IORDAN Marioara & GRIGORESCU Adriana & CHILIAN Mihaela-Nona, 2013. "Sub-Regional Disparities In Romania - The Case Of The Centru Region," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 65(5), pages 102-117.

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