The Economic Impact of the Social Economy on Poverty Reduction, Employment, and Income Inequality. A Comparative Analysis of Romania and the EU-27 in the Context Of SDGs 1, 8, and 10
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| Pages: | 96 : 110 |
| Abstract: | This paper investigates the economic impact of the social economy on poverty reduction, employment, and income inequality within the framework of Sustainable Development Goals (SDGs) 1, 8, and 10. The analysis is conducted from a comparative perspective between Romania and the EU-27 over the period 2020–2025, a timeframe marked by significant economic and social disruptions. The research combines a conceptual and critical review of the recent literature with a quantitative statistical analysis of key SDG indicators, followed by an econometric approach aimed at identifying the interdependencies between poverty, employment, and income inequality. Particular attention is given to the role of the social economy as a complementary mechanism to public policies, capable of facilitating labor market integration, enhancing employment quality, and supporting vulnerable groups. The findings highlight the existence of an asymmetric relationship between employment growth and poverty reduction, especially in the Romanian case, where structural vulnerabilities persist despite improvements in labor market indicators. At the same time, the reduction in income inequality does not necessarily translate into a proportional decrease in poverty, emphasizing the limits of redistributive mechanisms in the absence of productivity gains and quality employment. The study contributes to the literature by providing empirical evidence on the role of the social economy in strengthening the transmission mechanisms between employment, income distribution, and poverty alleviation. The results suggest that the expansion and institutional integration of the social economy can enhance socio-economic convergence and support the achievement of sustainable development objectives at both national and European levels. |
| JEL classification: | I32, J21, D63, O15, P46 |
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I32, J21, D63, O15, P46
