The effect of education and economic growth in the labour market in transition economies - Case study for SEE countries

• Author: Majlinda Mazalliu, Jeton Zogjani
• Position: Staffordshire University
• Pages: 156-167

ISSN 2410-3918 Academic Journal of Business, Administration, Law and Social Sciences Vol 1 No 2

Acces online at www.iipccl.org IIPCCL Publishing, Tirana-Albania July 2015

156

e eect of education and economic growth in the labour market in

transition economies - Case study for SEE countries

Majlinda Mazalliu, MBA

Stafordshire University

Jeton Zogjani, MBA

Stafordshire University

Abstract

In this research paper is analyzed labour market in transition economies with case study SEE

countries and the main theoretical arguments for discussions are as following: the eects of

education on labour market, improving labour market performance in SEE countries, structural

reforms and economic policies for improving labour markets, relationship between level of

education and growth on labour market. In methodology, the data is collected from international

institutions and is calculated through STATA program. e main analyses include: descriptive

statistic, multiple regression analysis and correlation matrix. e results of regression analysis and

correlation matrix have shown that education has negative impact and negative correlation on

labour market (labour market eciency and labour market regulation). But, economic growth has

shown positive impact and positive correlation on labour market (labour market eciency and

labour market regulation) and all variables that are including in T-statistical analysis have shown

non - signicance on labour market.

Keyword s: Eciency, human capital, regression analysis, regulation, STATA program.

Introduction

Education, human capital development, economic growth and labour market in

transition countries has an extended protracted history and still remains to be an issue

for exploration in the future. e labour market in SEE countries has not improved over

the past decade, despite that there were positive indicators of economic growth in these

countries (RIInvest, 2003); (Vidovic, 2004); (Alishani et al, 2013). e education system

in SEE countries has contributed on human capital and its eect was visible also on

economic growth and labour market (Hanushek, 2013) (Baldacci et al, 2004). In fact,

the continuous development of education and economic growth in transition economies

has helped to reform labour market in dierent ways, such as: overcoming economic

problems and political transitions in SEE countries; improving and strengthening of

the labour market toward contemporary global challenges (Caroleo, F.E. & Pastore, F,

2010); identication the real possibilities for new labour market resources; identication

benecial government policies and experiences on labour market during the transition

process in SEE countries (Lehmann, H. & Kluve, J, 2008).