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Challenges Of Labor Market Transformations Towards Social Policies In The Republic Of Moldova

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  • Galina SAVELIEVA

    (National Institute for Economic Research, Republic of Moldova)

  • Svetlana ZAHAROV

    (National Institute for Economic Research, Republic of Moldova)

Abstract

The transition to market economy and the prevalence of private property have contributed to the development of new labour relations. The coexistence of different forms of employment has conditioned the research of the determinants of formal and informal employment and their impact on the economy. In different countries, standard and atypical employment exists as a result of its own scenario depending on the socio-economic development model, the law framework, involvement in globalization processes, the dependence of the economy on foreign markets, etc. In the Republic of Moldova, which is not an exclusion, two opposite forms of occupation have been developed - formal and informal. Formal employment is based on labour legislation, respect for rights, social and human guarantees, stable socio-economic development, but informal leads to violation and non-compliance with labour rights, social protection for hiring workers, insufficiency and a deficit of budget income, which does not promote all measures for the country’s development. Based on the logistical analysis of the impact of social and demographic factors on the development of informal employment, its consequences on the financial stability of the social insurance budget, financial losses due to non-payment of social insurance contributions were highlighted. Some conclusions and proposals to improve the situation in labour market, transforming informal to formal employment, increasing the financial stability of the social protection system were elaborated.

Suggested Citation

  • Galina SAVELIEVA & Svetlana ZAHAROV, 2021. "Challenges Of Labor Market Transformations Towards Social Policies In The Republic Of Moldova," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 6(3), pages 95-120.
  • Handle: RePEc:brc:brccej:v:6:y:2021:i:3:p:95-120
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    social insurance; main employment indicators; forms of employment; formal and informal employment; social policies; wages; income;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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