Pregledni rad
https://doi.org/10.22598/iele.2023.10.2.8
NAVIGATING THE NEXUS: ECONOMETRIC INSIGHTS INTO EDUCATION AND EMPLOYMENT IN THE WESTERN BALKANS
Driton Qehaja
orcid.org/0000-0002-9147-4468
; Faculty of Economics, University of Prishtina, Prishtina, Kosovo
Atdhetar Gara
orcid.org/0000-0003-4341-7802
; South East European University, North Macedonia
Arber Hoti
orcid.org/0000-0001-9438-4057
; Faculty of Economics, University of Prishtina, Prishtina, Kosovo
Sažetak
In the rapidly changing global economic environment, economic restructuring, innovation, and globalization have led to marked changes in labor markets, creating significant skill gaps and mismatches. The recent economic upheaval, deepened by the COVID-19 pandemic and geopolitical conflicts such as the Russia-Ukraine standoff, has accentuated the need for a new paradigm of growth, one relying more heavily on domestic resources. The Western Balkan region, blessed with abundant natural resources and a prolific agricultural sector, still counts human capital as its most valuable asset. In this context, the evolution of education and the improvement of workforce skills become key components for enhancing economic recovery and growth in the Western Balkan economies. This research paper offers a comprehensive econometric investigation of the dynamics between education, skills, and employment within Western Balkan countries. Utilizing an extensive dataset of 2905 observations from the Balkan Barometer, Regional Cooperation Council (RCC) database, the study delves into the complex roles of compulsory, tertiary, and adult education systems in enhancing employability across six Western Balkan nations - Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia. The research employs a robust ordinary least squares (OLS) model to examine the effect of varying education levels and skills on employment while factoring in additional socio-demographic variables such as age, gender, and geographical location. The study challenges the conventional wisdom that suggests educational attainment alone is sufficient in the current job market. It provides quantitative evidence of the significant influence of both education and skills in obtaining employment. The analysis reveals a positive correlation between education, skills, and the employment index, affirming their crucial roles in job acquisition. Furthermore, the study considers auxiliary variables like age, gender, and residence, unearthing their potential interrelations with education and employment. The findings suggest that increased employment prospects are associated with older age groups, higher education levels, and urban residency. However, a notable gender discrepancy in the job market is observed, with women showing lower employment levels. The research also uncovers country-specific employment-level disparities, with Macedonia displaying the lowest and Bosnia, Herzegovina, and Kosovo exhibiting the highest employment coefficients. This study underscores the need to incorporate practical training and internships into the education system to boost the employability of young individuals. It further emphasizes the necessity for adequate material, human, and financial resources to facilitate this transition. This study underscores the need to align education and skills development for future employment strategies by providing invaluable insights for policy-making in the Western Balkans.
Ključne riječi
Western Balkans; education, skills; employment; labour market
Hrčak ID:
313119
URI
Datum izdavanja:
29.12.2023.
Posjeta: 1.169 *