January 2022
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If contractual work (waged) is traditional employment, “the new work” is represented by entrepreneurship and self-employment and to a certain extent by various forms of “subsistence economy”. We develop an instrument to understand how new work shapes the short-term labor market's sustainable functioning. The dynamic interaction between labor market macro-aggregates related to employment status is treated in a systemic approach. We analyze the Granger Causality (GC) relations between contractual/dependent work, non-contractual/independent work and the work’s social protection. A total of 14 VAR models have been analyzed following the Toda and Yamamoto (J. Econ. 66: 225–250, 1995) procedure as detailed by Giles (Testing for granger causality. Econometrics beat: dave giles, 2011), using 2 datasets (1999Q1-2018Q1 and 2008Q1-2018Q1). The main conclusion is that only a sustainable entrepreneurship mechanism could make the Romanian labor market suitable for the actual challenges. A powerful call for a new type of entrepreneurial behavior becomes evident in the case of Romania.KeywordsSustainable entrepreneurshipWaged employmentSelf-employmentUnemploymentInnovation