Emilia Ţiţan

Does the unemployment invariance hypothesis hold for Romania

ABSTRACT This article questions whether the unemployment invariance hypothesis of Layard et al. (2005), which states that movements in labour force do not significantly affect unemployment rates, holds true for Romania. Using quarterly labour force data for the 1996–2012 period, we explore the time-series properties of the two variables. We find that unemployment rates and participation rates have unit roots, and that they are not cointegrated, meaning that no significant long-term relationship exists between them. The analysis carried out on the first differences of unemployment rates and participation rates shows discouraged and added worker effects for Romania’s female labour force. This conclusion diverges from findings that point out to a stable, long-term relationship between unemployment and participation in several developed countries (Japan, Sweden, USA) and shows that Romanian labour market is highly adaptive, where changes in labour force participation do not lead to increases in unemployment. This finding can help model the influence of adverse developments such as ageing and emigration, and show their true impact beyond demographic doom scenarios. It also points out the role played by labour demand in shaping the evolution of the Romanian labour market.

Education and Innovation in the Context of Economies Globalization

Abstract Innovation is an essential element to generate sustained economic growth. But, we cannot speak of innovation without a high level of education or a high standard of living. As you well know Global Innovation Index (GII) provides a means of evaluating the innovation of performance evaluation and refining policy innovation policies for optimum growth of the economy. But this social and economic future development depends on the intellectual and human resources progress of the company. That is, the education of future requirements of the company. This implies a change in the techniques and methods used in education by understanding this social phenomenon as being capable of creating versatile individuals, responsible, capable of reasoning and learning innovative forward -looking. Moreover, the GII is a guide which aims at the development of innovation policy to verify that performance on the one hand due to the ability of an economy to innovate, and I refer here in particular to human capital and research, and on the other hand, the performance of innovation, that is, an economy with regard to the results-based-generated the two pillars of exit (knowledge and technology outputs and creative outputs). In this context, in the work of analyzing, comparing these indices we note that among them there is a close correlation which involves finding the combination of policies to ensure the sustainability of public finance on the one hand, and economic growth and employment on the other.

Education and Poverty

Abstract There are many, various and interconnected causes of poverty, and we can’t use a magic formula to eradicate it. But, we can consider education as a reducing risk element of high poverty, which may prevent the occurrence of another generation, much poorer. In the underdeveloped countries and developing countries, people instinctively know that education is a good thing for their children, and in developed countries, we have a lot to learn and to relearn about the importance of education. People who live in poverty are aware of the fact that sending their children to school will give them opportunities that they didn’t have. Even if education is not sufficient, due to the multidimensional nature of poverty, is it possible to consider it vital in the reduction of social exclusion?

Brain Drains or Brain Gains in Physicians Emigration? Evidence from MENA and East European Countries

This is a contribution to the new economics of skilled labor emigration that focuses on the mobility of physicians inside European Union from sending MENA and East European countries. Economic models under risk neutrality and aversion are used. The findings show that the education could change significantly the results on the emigration benefices. The empirical results based on the available data on emigration by Docquier and Marfouk (2006, 2008) and Bhargava, Docquier and Moullan (2010) allowed further use of the model to understand the current trends in the emigration of physicians and the border between brain gain and brain drain. The countries included in the study are all exhibiting brain gain under 1991-2004 emigration data. Each country is encouraged to anticipate the likely effects of this emigration on the economy with the increase of health demand, the domestic wages and the increase in education capacity for medical doctors.

The Main Factors that Influence the Decision in Choosing a Path in Tertiary Education

Abstract Choosing a college may be a difficult and sometimes an unpredictable process, but it is mainly seen from one perspective. We can find a lot of articles that give advice on how to make the best decision, but we do not know exactly the final result: what made a person choose a college over another one. So, a college can also be seen as a product. It is important to know the candidates expectation and to determine his / her motivation. Many would say that the main influence is the passion for a particular field, but there are few who know exactly what they want to become when they graduate High cchool which lead us into thinking that there are other significant motives. Therefore the purpose of this study is to determine the most important characteristics which take part in the process of the decision. In order to understand how people make choices between universities, a survey was conducted (collecting the quantitative information from young Romanian citizens) from which we extracted the ideal profile of a college and the satisfaction concerning the choices made by students. The results give a general view on what the candidates / students expect from the universities.

From Traditional to Digital: The Labour Market Demands and Education Expectations in an EU Context☆

Abstract The world we live in is crossing an era of a digital revolution, which transforms everything and keeping up to these changes is important for every economy. The Internet, the globalization trend, the new ways of working and interacting are raising new challenges. This papers aim is to provide an overview of the connection between education, the digital environment and the labour market. Our focus will be the strategy of the European Union to minimize the gap between the demand and the offer of the labour market of employees with developed digital competences. Also, we will study how important computer literacy is and how the educational process can be updated to meet the expectations of a growing and constantly changing digital environment. Using data from Eurostat, World Bank, the paper provides a fair analysis of the level of digital competences and their influence on labour market, emphasizing the role of digital education.

On the Persistence of the Over-Reaction of Merger and Acquisition Announcements: Evidence from the U.S. Stock Market between 2003 and 2007

The purpose of this paper is to examine how the M&A announcements affect the wealth of the investors in the case of the acquiring firms and if there is any persistent over-reaction. There is an extensive amount of studies written about M&As and their impact on both the short term stock returns and the long term performance of the stock prices, but the period starting in 2003 and ending in 2007, between two financial crisis, is in none of them analyzed. The paper points out the implications of the size of the acquirer and the method of payment that the bidding firm uses in the case of different types of M&As. Our results indicate that the over-reaction of the stock prices at M&A announcements is persistent, but only in the long-run.