Abstract
This paper examines the role of labor market inclusion as a determinant of poverty reduction in Romania over
the period 2000–2024. The study aims to assess how labor market participation, economic growth, income inequality,
and education influence poverty dynamics. The research is based on annual data obtained from Eurostat and The Global
Economy database and combines descriptive analysis with an econometric approach. The empirical analysis employs a
multiple linear regression model estimated using the Ordinary Least Squares (OLS) method, where the at risk of poverty
rate is considered the dependent variable. The independent variables include economic growth, labor force participation
rate, the Gini coefficient, and tertiary education attainment. The results indicate that labor market participation and
education have a significant negative impact on poverty, highlighting the importance of employment and human capital
in improving living standards. Economic growth also contributes to poverty reduction, although its effect is relatively
limited. In contrast, income inequality has a strong positive effect on poverty, suggesting that unequal income distribution
undermines the benefits of economic growth. The findings emphasize that poverty reduction is a multidimensional
process, influenced not only by economic performance but also by labor market inclusion and income distribution. The
study highlights the need for policies aimed at increasing labor force participation, reducing inequality, and improving
access to education to achieve inclusive and sustainable economic development.
the period 2000–2024. The study aims to assess how labor market participation, economic growth, income inequality,
and education influence poverty dynamics. The research is based on annual data obtained from Eurostat and The Global
Economy database and combines descriptive analysis with an econometric approach. The empirical analysis employs a
multiple linear regression model estimated using the Ordinary Least Squares (OLS) method, where the at risk of poverty
rate is considered the dependent variable. The independent variables include economic growth, labor force participation
rate, the Gini coefficient, and tertiary education attainment. The results indicate that labor market participation and
education have a significant negative impact on poverty, highlighting the importance of employment and human capital
in improving living standards. Economic growth also contributes to poverty reduction, although its effect is relatively
limited. In contrast, income inequality has a strong positive effect on poverty, suggesting that unequal income distribution
undermines the benefits of economic growth. The findings emphasize that poverty reduction is a multidimensional
process, influenced not only by economic performance but also by labor market inclusion and income distribution. The
study highlights the need for policies aimed at increasing labor force participation, reducing inequality, and improving
access to education to achieve inclusive and sustainable economic development.
Cuvinte cheie
labor market inclusion
poverty reduction
economic growth
income inequality; tertiary education; Romania
Istoric articol
Publicat
26.06.2026
Informații autori
Citare recomandată
NICOLETA-ȘTEFANIA DRĂGAN, ELENA-VIOLETA NICULA (2026). LABOR MARKET INCLUSION AND ECONOMIC GROWTH AS DETERMINANTS OF POVERTY REDUCTION. Constantin Brâncuși University of Târgu Jiu Economics Series, 1(3), 413–422. https://doi.org/10.65631/jes.3.2026.39
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