Simulation Analysis of the Effects of Increased Foreign Ownership on Wage Inequality

Transition countries have, in general, experienced an increase in labour market inequality during and after the initial transition period. Theory and empirical studies analysing the causes and mechanisms of increasing inequality in transition economies identify globalisation, skilled-biased technological change, differences in access to schooling, the pattern and level of unemployment and institutions as important factors. Foreign direct investment (FDI) has increased significantly in transition economies during the transition period and has been considered to be an important channel for the diffusion of new technology, managerial skills and new knowledge. As a result of technological and management expertise FDI may raise the level of wages in the host economies, improve working conditions and increase employment, though little previous research has focused on these effects in transition economies. Using the GINI coefficient as the measure of wage inequality a simulation analysis indicates that the net effects of FDI on wage inequality will depend in part on country specific factors, namely how large are the differences in skilled and unskilled wages, the skill-intensity of employment in foreign-owned firms compared to domestic ones and the relative size of the foreign-owned sector

Did FDI Increase Wage Inequality in Transition Economies?

Purpose of this paper -The last two decades have been characterised by a rise in income and wage inequality in a wide range of countries, including European transition countries. The rise in globalisation is one major factor explaining this increasing wage inequality. International trade and FDI have increased significantly since the beginning of transition and this paper focuses on whether FDI plays an important role in explaining the pattern of wage inequality in selected transition countries. Design/methodology/approach- A cross-country empirical investigation has been conducted using two alternative measures of wage inequality: the Gini coefficient and the Theil index. Several model specifications and estimation strategies have been employed to obtain consistent estimates and to check for the robustness of the results. Findings- The results indicate that a rising share of inward FDI in GDP increased wage inequality in transition economies, though its overall effect was relatively small. Considering the long run, there is no clear evidence of a concave relationship between FDI and wage inequality, which may be a consequence of the relatively low levels of FDI in many transition countries. Practical implications -Inwards FDI has made a small contribution to increasing wage inequality in European transition economies. However, its overall beneficial effects on labour markets in these countries suggests that rather than restricting FDI governments should target increasing the supply of skilled labour. What is original/value of paper- This new empirical evidence supports the hypothesis that an increased inward FDI stock as a share of GDP increases wage inequality in transition economies, however this relationship is a complex one. Differences in average wages, wage differentials, employment shares of skilled workers and relative size of the foreign-owned sector are all likely to be important for the behaviour of wage inequality

Youth Graduates Employment Country Studies of Albania and North Macedonia in Economics Programs

Albania and North Macedonia, as many countries in South-Eastern Europe, struggle with youth unemployment which is persistent, acute and unresponsive to the education of young people in both countries. High school graduates often decide to continue university education for better job perspectives and advancement. High education is often perceived as a guarantee for employment. But statistics show that youth employment faces many challenges and has higher rates compared to other categories of the population. Therefore it is the aim of this study to address a general panorama of the graduated youth employment and unemployment through two case studies: Luigj Gurakuqi (LG) the University of Shkodra in Albania and South-East European (SEE) University in North Macedonia. A framework of comparative analysis with focus investigation of the employability of youth in Albania and North Macedonia is presented. Special attention is given to the economics cohorts of students graduated in the last decade. Questionnaires are delivered to this category of graduated students of two universities. Qualitative and quantitative analyses are presented giving an overall view with the specifics of each university. A statistical technique as logistic regression analysis is used to estimate the correlation between employment/unemployment and the various explanatory variables. Regression analyses of the graduated student’s questionnaires of the LG University in Albania and SEE University in North Macedonia show that the GPA of the bachelor program plays an important role in being employed. While only LG University questionnaires results show relationship of variables as gender, time of graduation, and master education level to the employment status of the graduates students. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.</p

Employment of Economics Graduates: Does Gpa Matter?

The level of educational attainment and skills of young people have a strong influence on economic activity and consequently on their employment rates. Grade point averages (GPA) of undergraduate studies keep on being a relevant selection tool in the employment process. GPA metric is believed to be an index of mental ability related later to job performance and successful outcomes. Youth employment in Albania and North Macedonia is low and unresponsive to the education of young people. This study offers an overview of youth unemployment rates in the Western Balkan countries. It uses survey analyses of tertiary graduates of economics programs at Luigj Gurakuqi University (LGU) in Albania and South-East European University (SEEU) in North Macedonia. A comparative analysis focusing on the determinants of the employability of economics graduates in the last decade is realized using qualitative and quantitative analyses for each university. Logistic regression results indicate that the GPA of the bachelor program is an important factor in the employment of graduates. Additional variables such as gender, time of graduation, and obtaining a master’s degree play an important role in being employed in LG University. Developing educational attainment by updating educational and vocational curricula taking into account market demands would improve the school-to-work transition of youth

The Role of Volunteering in the Integration of Roma Children in Schools-Lessons for the Republic of North Macedonia

Education (good teachers and good schools) is crucial for the successful integration of vulnerable groups in the society. Multicultural diversity presents an opportunity to make schools more inclusive, creative and open-minded. Although there are different projects and activities for Roma inclusion in schools, the number of Roma children attending formal education is still very low. Without having attended formal education, the chances for social exclusion are high and minimal for leading a self-defined life. To increase the rate of school registration and the rate for completion, long-term policy interventions and financial support from international donations are needed. This paper aims to analyze the general situation of Roma children and youth the age of pre-school education, primary and secondary education, as well as the engagement of youth in volunteering activities as a significant role in the inclusion of Roma children in schools. Engagement in volunteering activities can help young people to be more integrated into society, as through volunteering they gain valuable experiences, new skills, and competencies that can improve their employability possibilities and enhance their attitudes towards citizenship