The labor force in Romania is underpaid while the capital is overpaid, but if we want to talk about wages the country should solve issues like highways, production, and justice, said Valentin Lazea, chief economist of Romania’s National Bank (BNR), reports Economica.net.
The capital takes almost 60% of the gross national income (GNI) whereas the labor force takes 40%. Lazea explained that this happens because investors have additional costs with bad roads that take more time, production, legal framework that means lawyers. All this leads to lower wages.
In his opinion, the country needs to “strike other duckpins with the ball” in order to solve the wages problem, namely solve the problems related to infrastructure, production, and justice.