The Influence of Investment in Education on Inclusive Growth - Empirical Evidence from Romania vs. EU

Abstract

Abstract With approximately 80 million people with low or basic skills, 19 million children at risk of poverty, very high school drop-out rates, and more jobs requiring higher qualifications, the EU needs inclusive growth. Inclusive growth means more and better jobs, investment in skills and training, modernizing the labor market. The aim of the paper is to test the influence of the investment in training on others macroeconomic indexes, such as unemployment rate, GDP, lifelong learning, medium wage for the EU countries. We compare the indexes from 2008 with the one from 2010-2011 to see how the targets from Europe 2020 strategy were affected by the crisis and to determine which countries are closest to achieve the targets. Using these indexes we group the countries into clusters to see similarities and differences between them and to determine which politics should be suitable to adopt.