The analysis of regional earnings inequalities in Romania

Abstract

The priorities of regional development policies aim at reducing interregional and intraregional disparities by supporting the creation of some more integrated regional labour markets and by a better use of regional synergies in order to increase the investment attractiveness. Considering these aspects, the purpose of the study was to do an analysis in the developing regions of Romania which tried to identify the factors that influence earnings and earnings inequalities. We considered a panel analysis in which the determinant factors were the gross domestic product, foreign direct investment, the share of graduates from post-secondary and tertiary education of the total population of the region and inflation. These macroeconomic indicators play an important role in achieving the cohesion policy objectives to reduce disparities between the most developed regions and those with a lower level of development.

Keywords

• earnings inequalities
• regional disparities
• earnings
• panel date