Public Sector Shock

Public Sector Shock

The Impact of Policy Retrenchment in Europe

Edited by Daniel Vaughan-Whitehead

The goal of this volume is to study this ‘public sector shock’. While budgetary reforms seek to ensure a more balanced and sound economic policy, they may generate new work inequalities among public sector employees, most particularly among women, who account for a considerable proportion of public sector employment. Cuts in education and training may also have an impact on the quality of human capital in both the public and private sectors, despite the fact that the recent crisis has shown the value of education as employees with better skills and training are more likely to maintain their jobs and incomes.

Chapter 12: Romania: A country under permanent public sector reform

Valentina Vasile

Subjects: economics and finance, labour economics, public sector economics, social policy and sociology, economics of social policy, labour policy


During the political and economic transition in Romania, the public sector underwent continuous reform, ranging from measures required to adjust the government sector to the market economy, to those to meet the demands of EU accession, and finally to measures to overcome the crisis. Public sector employment increased significantly, with jobs paid from the state budget increasing from about 800,000 at the beginning of the transition to almost 1.4 million before the crisis, then decreasing again to below 1.2 million. The public sector concentrates about 21 per cent of the labour force and its total wage fund represents about 25 per cent of budgetary expenditure (Voinea et al. 2010). The institutional structure has followed the same path of repeated change, with increases in the number of ministries, agencies and so on and then their restructuring and merging during the crisis.

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