SHS Web Conf.
Volume 95, 2021The 3rd International Conference on Resources Economics and Bioeconomy in Competitive Societies (RebCos’20) under the title Environmental Challenges, Innovative Technologies and Rural Areas in Digital Era
|Number of page(s)||7|
|Published online||03 February 2021|
Rural - urban income gap and labour market in Romania
National Institute for Economic Research “Costin C. Kirițescu”, Calea 13 Septembrie, no.13, Bucharest, Romania 050711
* Corresponding author: email@example.com
Rural – urban income gap is an important social-economic development indicator for a society. A large rural - urban income gap within a society reveals a split of it into two distinct societies, one extremely poor compared to the other. In Romania, almost half of the resident population lives in rural areas (46.02% in 2019), while the urban-rural migration flow is higher than the traditional reverse flow since 1997. However, the country is characterized by regional economic disparities, Bucharest-Ilfov region being the most economically developed. Labour market in rural areas is underdeveloped, rural population being highly depended on subsistence agriculture. Furthermore, rural areas have a low level of income and living standards. In this paper, we analysis the rural-urban labour market dynamics and rural-urban income gap using a LMDI (logarithmic mean Divisia index) decomposition for 2005-2019 period. Factors such as income gap effect and structural rural income effect are considered. Results show that the total urban–rural income gap has decreased with 8.91%, while structural rural income effect contributed with an increase of only 0.63%, the income gap effect (of different employed population groups) being of -9.49%.
Key words: rural-urban income gap / LMDI decomposition / rural development
© The Authors, published by EDP Sciences 2021
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