Labor Market Inclusion And Economic Growth As Determinants Of Poverty Reduction

This paper examines the role of labor market inclusion as a determinant of poverty reduction in Romania over the period 2000–2024. The study aims to assess how labor market participation, economic growth, income inequality, and education influence poverty dynamics. The research is based on annual data obtained from Eurostat and The Global Economy database and combines descriptive analysis with an econometric approach. The empirical analysis employs a multiple linear regression model estimated using the Ordinary Least Squares (OLS) method, where the at risk of poverty rate is considered the dependent variable. The independent variables include economic growth, labor force participation rate, the Gini coefficient, and tertiary education attainment. The results indicate that labor market participation and education have a significant negative impact on poverty, highlighting the importance of employment and human capital in improving living standards. Economic growth also contributes to poverty reduction, although its effect is relatively limited. In contrast, income inequality has a strong positive effect on poverty, suggesting that unequal income distribution undermines the benefits of economic growth. The findings emphasize that poverty reduction is a multidimensional process, influenced not only by economic performance but also by labor market inclusion and income distribution. The study highlights the need for policies aimed at increasing labor force participation, reducing inequality, and improving access to education to achieve inclusive and sustainable economic development.