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CHALLENGES FOR THE ROMANIAN SMEs ON THE LABOUR MARKET

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  • Madalina Ecaterina POPESCU
  • Amalia CRISTESCU
  • Ana-Maria GATEA

Abstract

This paper aims to investigate how companies react to various changes in fiscal and wage policies. Empirical evidence is provided for the case of Romania, using quantitative statistical analysis on survey data. The survey was conducted in November 2019 by the National Scientific Research Institute for Labour and Social Protection upon around 1200 Romanian SMEs. Through this paper, we show how companies reacted to the legislative changes that took place at the beginning of 2018, the most important being the increase of the minimum wage, the transfer of social contributions from employer to employee and the reduction of income tax from 16% to 10%. Finally, we share some insights about potential challenges the business environment might be facing in the near future.

Suggested Citation

  • Madalina Ecaterina POPESCU & Amalia CRISTESCU & Ana-Maria GATEA, 2020. "CHALLENGES FOR THE ROMANIAN SMEs ON THE LABOUR MARKET," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 497-505, November.
    • Handle: RePEc:rom:mancon:v:14:y:2020:i:1:p:497-505
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    References listed on IDEAS

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    1. Katalin Bodnár & Ludmila Fadejeva & Stefania Iordache & Liina Malk & Desislava Paskaleva & Jurga Pesliakaitė & Nataša Todorović Jemec & Peter Tóth & Robert Wyszyński, 2018. "How do firms adjust to rises in the minimum wage? Survey evidence from Central and Eastern Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    2. Madalina Ecaterina POPESCU & Eva MILITARU & Dan PELE & Miruna MAZURENCU MARINESCU & Valentina VASILE & Simona ILIE & Adina MIHĂILESCU & Adela ȘERBAN, 2017. "Support for Establishing a Minimum Wage-Setting Mechanism in Romania," Books of Marketing and Economy, Editura Lumen, Department of Economics, edition 1, volume 1, number 09, October.
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