Abstract:

Nowadays the labor markets all around the world are facing major challenges due to the global economic changes. A better understanding of the particularities of this type of market can provide useful information about the effects that the economic crisis had on the relationship between job creation and job destruction.

In this paper we analyze the labor market in Romania between 2005 and 2012 using the Beveridge curve to emphasize the efficiency or inefficiency of the matching process and to test the correlation between a set of factors and unemployment, factors that influence the structure of the labor market. Using and econometrical approach we tested a set of established hypothesis using 2 models: one at national level computed with time series and one panel with regional data. Our econometric approach underlines the relationship between unemployment and job vacancies and also the convexity of the U-V curve. 

The influence factors chosen for Romania were long term unemployment positively correlated with the endogenous variable, unemployment benefits as a percentage of GDP inconclusive since the coefficient value resulted to be insignificant and labor productivity negatively correlated as our hypothesis stated. Overall in the analyzed period the efficiency of the matching process in Romania slightly improved and the decreasing of long term unemployment and also the increasing of the labor productivity are correlated with it.