Analysis of the effects of unemployment in Romania

摘要

Unemployment is a negative phenomenon, which occurs in every market economy country. The wasting of a large amount of labor resources is an undeniable effect of large-scale chronic unemployment. The unemployed represent valuable resources, the potential production of which is wasted. In the first part of this paper we developed a short analysis of the economic costs induced by the occurrence of unemployment, costs which arise because the demand towards certain sectors declined. This results into the incomplete use or even the non-use of some production capacity. The assessment of these costs can be achieved by using Okun's law. Also, we try the econometric testing of the validity of this law and to identify an equation of regression for the case of Romania for the period 1992-2009.