Labor force and economic growth based on demographic pressures, happiness, and human development: Empirical from Romania

Abstract

This paper examines the effects of demographic pressure, happiness, and a human development index on labor force and economic growth in Romania for the period 2013-2019. Using path analysis, we developed two models, one exploring direct effects and the other indirect effects. Calculations in the models used time series data obtained from annual reports. The paper documents six important findings, including that the variables demographic pressure, happiness, and the human development index support economic growth significantly. Moreover, the human development index and labor force also play an important and significant role in economic growth, but the human development index is the single most striking variable from our hypothesis test; it is shown that this index also has a significant effect on economic growth through the labor force. The evidence offers insights to stakeholders that emphasis needs to be placed on demographic pressure and happiness so that they can play a real role in the success of the population’s welfare.