Factors Behind Working Poverty in Romania

Empirical research shows that working poverty (or in-work poverty) has become a serious socio-economic problem at European level, and not only. This paper analyses the main factors behind in-work poverty in Romania, between 2007 and 2011, aiming to identify some possible measure that need to be taken so that in-work poverty decreases. The results highlight that working poverty din Romania, ismainly determinedby employment vulnerability and precarity. The existence of an inefficient employment structure, characterised by high employment in agriculture, high share of self-employment (especially own-account workers and contributing family workers), low labour productivity, low level of the employed population with tertiary education, contributes to an increase in employment vulnerability in Romania, with a negative impact on working poverty. Moreover, low wages generated by an extremely reduced labour productivity; represent an important channel of in-work poverty in Romania. Nevertheless, the results confirm those personal characteristics, job characteristics and the household context determine the extent to which the population is affected by in-work poverty. Therefore, adopting some active policies is required in order to make the transition of employment from poverty to welfare.