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Submitted by Luca P. on

This article provides extremely interesting evidence.
I wonder what kind of institutions are in place in Romania. The shortage of skilled knowledge workers sugggests that the national labor market features all the elements for perfect competition. Nevertheless, the article points out that wages are not very high in Romania for knowledge workers. I would like to better grasp why is this the case: are there too many wage regulations? Do firms cooperate and agree not to poach workers so as to keep wages below the efficient benchmark? However, it seems there to be room for a refinement of institutions that may empower Romanian firms’ ability to attract talent.