Education and Labour Market Outcomes: Empirical Evidence in Romania

Abstract

Vocational education and training are very important among young people and adults, both from the urban environment and especially from the rural environment. Emphasis on education and vocational training can play a strategic role in the process of economic development. The research objective of this work consists in evaluating the effects of the representative factors that influence education in Romania in close relation with the coordinates of the labour market, infrastructure and personnel in education. Thus, we consider as endogenous variables the number of graduates, but also the degree of participation of the population in the labour force, highlighted through the prism of the employment rate and the unemployment rate, for the period 2000-2020. The research methodology consists in the application of structural equation modelling (SEM). In order to capture the differences between urban and rural areas, two other specific coordinates will be introduced, namely the employment gap and people at risk of poverty or social exclusion according to the degree of urbanization. Based on the results obtained, I propose some solutions for improving the quality of education in Romania that will also be beneficial for the labour market.