The Relationship between Labour Productivity and its Explanatory Factors in Romania

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The Relationship between Labour Productivity and its Explanatory Factors in Romania

ABSTRACT: The aim of the paper is to analyse Romania’s labour productivity in relation to certain economic indicators such as government expenditures on tertiary education, gross fixed capital formation, changes in real wages, total population categorized by different age groups, using empirical data collected from Eurostat and the National Institute of Statistics in the case of Romania, covering the period 2002-2018. In order to examine the relationship between labour productivity and the factors above mention, I used the Scatter Plot Graphs, as well as the Pearson correlation coefficient, to identify trends and solutions for increasing labour productivity. I have demonstrated that the increase of labour productivity depends on government expenditures on education, investments, wages and workers age. In this context, I proved that the people aged between 50-65 years have a low productivity capacity which make the employers to be more skeptical when hiring them, thus highlighting the need to introduce national active ageing programs for people over 50 years.

KEYWORDS:- education, growth, human development, labour productivity

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