A Dynamic Model in the Labor Market: Reasons of Imbalances at the Transition Stage of the Economy

L. Matraeva, E. Vasiutina, S. Erokhin, O. Kaurova
European Research Studies Journal, Volume XXI, Issue 3, 206-217, 2018
DOI: 10.35808/ersj/1054

Abstract:

The aim of this work is the formalization of the model of coordination of interests of employers and owners of human capital in the labor market in high-tech industries of the national economy in the conditions of transformation of the national economy. Research conducted by the authors proved that the structure of costs of reproduction of human capital and the requirements for human potential have their own distinct features that should be considered in the specification of the economic model of value creation of human capital in these sectors. Authors propose an improved method of balancing interaction of economic interests of subjects of the labor market: employee and employer. The model reveals the mechanism of formation of the equilibrium value of human capital based on the cost approach and the income approach in modeling supply and demand in the labor market in high-tech industries. The model allows to estimate a quasi-equilibrium state of the labor market in high-tech industries with emerging trends in this market in the country as a whole. The study provides valuable analytical information required to implement science-based economic decisions in the management of human resources and their transformation into human capital, which in turn will improve the efficiency of realization of innovation potential of the company as the subject of the high-tech industry of national economy.At the level of state governance model allows to monitor the mismatches in the labor market that allows to develop actions to minimize their negative impacts on the national economy.


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