Abstract
One of the approaches describing the strategic vision initiated by the Europe 2020 Strategy for smart sustainable and inclusive growth considers that increasing public expenses with education can help in achieving its goals. Concomitantly, higher levels of educational attainment are supposed to at least partially offset the negative effects of economic crises. Nevertheless, one of the consequences of this strategic approach—overeducation—tends to be underrated. This article aims to analyse the influence of the institutional arrangements of the business environment and labour market on overeducation in Romania. For this purpose, we designed two indicators for the institutional quality of business environment and labour market. Their evolutions were compared with the change in the unemployment rate among tertiary graduates. The research reveals that in Romania, the quality of institutional arrangements can still be improved, and that one of its negative consequences is unemployment and an exacerbated number of tertiary graduates in the higher education system. An inverse relationship has been identified between the quality of institutional arrangements of business environment and labour market, on one hand, and the rate of tertiary graduates who never worked in the total unemployed tertiary graduates, on the other hand.
Highlights
The process of economic growth in the European Union (EU) is structured within and as goal of input–output strategies (I-OS), which are mainly quantitative
The qualitative analysis is aimed at highlighting the following hypothesis: Institutional arrangements encouraging the development of the business environment through new initiatives and/or the development of already existing initiatives could lead to a decrease in quantitative overeducation (QTOE)
The research underlines the implications of input–output strategies for the business environment and labour market in Romania
Summary
The process of economic growth in the European Union (EU) is structured within and as goal of input–output strategies (I-OS), which are mainly quantitative. At the very heart of this strategy—that is influenced by the human capital theory—lies education as a key factor for the economic growth and quality improvement of the labour force [1,2,3,4,5]. As part of the European agenda, is credited with the capacity to render economies more competitive within the endeavour of achieving sustainable growth. According to Sustainable Development Goal 4, one of the targets to be reached by the year 2030 is to ensure universal access to affordable and quality technical, vocational, and tertiary education, including university [8]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
