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SOCIAL CONSEQUENCES OF RURAL-URBAN INCOME INEQUALITIES IN ROMANIA
Abstract
Romania has amongst the highest income inequality in the European Union, one of the most important dimension of this inequality being between rural and urban population of Romania. This paper is a descriptive attempt of highlighting the roots and the social consequences of this inequality, using data from National Institute for Statistics, but also Eurostat data. First, the article analyze the property structure as one of the sources of wealth and income in the rural areas, and concludes that the consecutive land reforms made until now determined a high degree of land fragmentation, small farms being the majority in the agricultural landscape. This situation determines inefficient use of land and labor, low incomes and generates poverty. Secondly, low investment rate in the rural areas determines less possibilities of employment for an important percentage of the rural population. All these determines high degree of unemployment rate, lower educational achievements and high percentages of early leavers of the schools, poverty, lower levels of income and a family budget oriented for surviving expenditure for the majority of the rural population. The article also points out that one of the result is the migration of especially young rural population in the Western European countries, with positive (e.g. increasing the family incomes), but also important negative consequences (e.g. aging of the rural population). One important finding is that, even inside rural area there are high differences between Romanian regions, and they already seem deeply-rooted and persisting.
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