In the aftermath of Angola’s civil war, strong economic relations developed between the country and the People’s Republic of China. Our study addresses China’s investment risks in Angola, considering an infrastructure-for-petroleum partnership between these two countries. The main working hypothesis is that the recovery of Chinese investments made in Angola is has translated into thousands of barrels of petroleum being imported daily from Angola. We analyzed the main economic, social, and political indicators that describe the situation in Angola that could impact the recovery of Chinese loans in the form of oil exports. Data processing implied involved regression-based imputation, MinMax data normalization, the use of the Analytical Hierarchy Process (AHP), and econometric analysis, next to the construction of a composite risk indicator. The results of the econometric analysis highlighted that an increase in the composite risk indicator of 1% leads to a decrease in the quantity of petroleum exported by almost 6377 barrels per day. Because, at least in the short run, the economic diversification in Angola is weak, and the most important asset is its oil, the partnership with China will continue to exist. This cooperation model represents a source of economic growth and infrastructure development for Angola and a source of energy that fuels China—one of the most powerful economies in the world.
Taking into consideration the recent debates on adopting a progressive tax system over the flat-rate taxation, our paper aims to investigate the impact of a change in the current Romanian personal income tax policy system from the 10% flat-rate tax system to some alternative progressive taxation scenarios. The methodological approach consisted in using the European Union Survey on Income and Living Conditions (EU-SILC) database to micro-simulate the impact upon poverty and income inequality. Through our ex-ante tax policy analysis we bring empirical evidence of a modest, but positive effect upon poverty rate and income inequalities in favor of a progressive taxation system. However, when looking at the government financial implications through the personal income tax budget revenues, we discuss upon the possible trade-off between the benefits on poverty and income inequalities and the possible budgetary drawbacks. Despite the data limitations, this study has the benefit of being among the first attempts to evaluate the impact of a personal income tax policy reform for the case of Romania.
Inequality of opportunity is a critical issue that significantly impacts the socioeconomic landscape. Understanding the variations in income and educational attainment has become increasingly important, as these disparities are often shaped by social determinants such as individual effort and circumstances, which can affect educational outcomes and income potential throughout life. The aim of this paper is to quantify the inequality of opportunity and to examine how circumstances beyond an individual’s control influence income and level of education in the Central and Eastern European countries. We draw on recent data from the fourth wave of the Life in Transition Survey and employ inequality of opportunity indices, Shapley and Oaxaca decompositions, and econometric models to capture the structure and magnitude of the effects. Our findings reveal that inequality of opportunity in income is mainly due to gender and, to a smaller extent, parental education, while educational attainment is mainly influenced by parental education, books at home and the mother’s occupational sector. The results provide a robust foundation for supporting targeted policies in education, employment, and pay equity, and they indicate the need to tailor strategies to the specific contexts of each Central and Eastern European country.
An inclusive labor market, with equal opportunities for all, is a desideratum of all states, and one of the Sustainable Development Goals established by the United Nations for the year 2030. Discrimination can take many forms, based on many reasons, and has a strong impact on the living standards of individuals. Discrimination in the labor market can negatively affect economic performances. The aim of the research is to investigate the perception of individuals regarding discrimination, with a focus on the characteristics of the individuals who feel discriminated in Romania in a work-related context. In order to capture the relevant aspects, we turned to descriptive analysis and logistic regression. The analysis revealed that around 14% of the respondents participating in the survey faced a discriminating situation in a work-related context during the last year. Moreover, less than half of these individuals have taken any action against the discrimination act, the others believing that nothing would have changed. The logistic regression results indicated that Roma people have 6.7 times higher chances to be discriminated in a work-related context as compared to a Romanian individual. Moreover, higher educated individuals are more likely to experience discrimination in the labor market.
In recent years, EU member states have faced two significant crises: the COVID-19 pandemic and high inflation, exacerbated by geopolitical instability. These events have led to a decline in household purchasing power. Our study aims to quantify the impact of these crises on household income dynamics in Romania, using data from the EU Survey on Income and Living Conditions and the EUROMOD tax-benefit microsimulation model. We analyze income changes across demographic segments from 2019 to 2021 (COVID-19 period) and 2021 to 2023 (inflation crisis), focusing on household characteristics such as the presence and number of children, the gender of the household head, and the presence of elderly members. Our findings reveal that while disposable income increased from 2019 to 2021, the poorest 10% experienced the smallest gains. In 2022–2023, inflation eroded these increases, and the lower half of the income distribution struggled with reduced earnings and pensions. Despite this, the Gini coefficient for disposable income decreased from 2019 to 2023, indicating a reduced inequality. Our study highlighted that targeted public policy interventions are essential to support vulnerable households and mitigate the effects of economic shocks.
Employment is an important element of inclusive and sustainable economic growth because it has powerful effects on society. At the individual level, employment is a prerequisite for economic independence, social development, and professional satisfaction. At the macroeconomic level, employment enhances consumption, which leads to businesses’ progress, being considered the most meaningful factor for combating poverty and social exclusion. Although the goal is the same, countries can face different barriers and require different policies. This article investigates recent trends, patterns, and employment determinants in the European Union (EU) member states. We use cluster regression with fixed effects panel data models to group the countries into homogeneous clusters and obtain specific coefficients for each cluster. The clustering algorithm identified the heterogeneity of the countries, indicating an optimal number of three clusters for the grouping of EU states, considering the set of variables used. The selected indicators covered the economic, educational, and social dimensions, providing a complex vision of employment and how it can be improved. Our results indicated that social protection expenses, income, and gender inequalities negatively influence the employment rate. In contrast, educational, trade openness, and research and development expenditures increase employment in the EU. Moreover, the results obtained for each cluster allow the conclusions to be nuanced, indicating different patterns within the EU but still similarities between certain countries, providing an in-depth investigation of employment helpful in supporting the goal of inclusive economic growth of the EU member states.