DEVELOPMENT OF PRODUCTION FUNCTION MODEL IN ORDER TO QUANTIFY THE CONTRIBUTION OF RESTRUCTURING AND LABOR MARKET EFFICIENCY IN ROMANIA DURING THE PERIOD OF TRANSITION

by Zaman, Constantin
Published in Romanian Journal of Economic Forecasting, 2004, volume 5 issue 1,
15-24

Abstract

The paper attempts to evaluate the degree of restructuring of the Romanian labor market, namely the evolution of the labor efficiency over the transition period. The purpose is to reveal to which extent the transition reforms have brought higher efficiency into the economy, in which way the privatization increased the labor productivity in the private sector and what happened with the remaining state companies in terms of productivity and efficiency. The results point out to a still long way until the completion of the employment adjustment, the still insufficient development of the private sector (despite its increasing share in the overall economic activity) in terms of productivity, economic efficiency and capability to absorb the labor laid off by the public enterprises.

Keywords: labor market restructuring, privatization, productivity, labor market efficiency
JEL Classification: J21, J23