The effects of digitalisation on the labour market: the case of Russia

Matraeva, Liliia; Vasiutina, Ekaterina; Belyak, Alexey

doi:10.13169/workorgalaboglob.14.2.0031

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Work Organisation, Labour & Globalisation

Volume 14, Issue 2

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The effects of digitalisation on the labour market: the case of Russia

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Author(s): Liliia Matraeva , Ekaterina Vasiutina , Alexey Belyak

Publication date (Print): 1 January 2020

Journal: Work Organisation, Labour & Globalisation

Publisher: Pluto Journals

Keywords: labour market, digitalisation, institutional traps, lock-in effect

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Abstract

This article looks at the mechanism of formation of new institutional traps in the labour market under conditions of digitalisation of the economy. In particular, the effects of coordination, training and pairing, as well as cultural inertia and lobbying, are analysed as structural elements of institutional traps, which in the labour market create prerequisites for the consolidation of specific social norms that reduce the overall efficiency of the economic system. It proposes that, when all the effects are implemented synchronously, they complement each other in such a way as to contribute to the formation of institutional traps in the labour market when digital technologies are introduced. This leads to an escalation of risks in the labour market, against the background of an aggravated contradiction between supply and demand, leading to a self-sustaining structural imbalance associated with the introduction of digitalisation tools. The article draws attention to inertia in the process of adaptation of public institutions, which prevents the optimal institutional set up being reached, as there is a contradiction between the previously formed model of behaviour of economic agents and the system of management.

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Author and article information

Journal

Journal ID (doi): 10.2307/j50010512

Journal ID (jcode): workorgalaboglob

Title: Work Organisation, Labour & Globalisation

Publisher: Pluto Journals

ISSN: 1745-641X

ISSN: 1745-6428

Publication date (Print): 1 January 2020

Volume: 14

Issue: 2 ( doiID: 10.13169/workorgalaboglob.14.issue-2 )

Pages: 31-45

Article

Publisher ID: workorgalaboglob.14.2.0031

DOI: 10.13169/workorgalaboglob.14.2.0031

SO-VID: 3354a499-c955-4ebf-b62a-968cad23b10b

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All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

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lang eng

ScienceOpen disciplines: Sociology,Labor law,Political science,Labor & Demographic economics,Political economics

Keywords: labour market,digitalisation,institutional traps,lock-in effect

REFERENCES

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Comments

Comment on this article

[1] Abdrahmanova, G.I., L.M. Gohberg, M.A. Kevesh (2017) Indicators of the Digital Economy: 2017: Statistical Compilation. Moscow: Higher School of Economics.

[2] Alchian, A. (1950) ‘Uncertainty, evolution and economic theory’, Journal of Political Economy, 58 (3):211–21.

[3] Arthur, W.B. (1987) ‘Self-Reinforcing Mechanisms in Economics’ in P.W. Anderson, K. J. Arrow and D. Pines (eds) The Economy as an Evolving Complex System, Sante Fe Institute Studies in the Sciences of Complexity, Santa Fe, NM: Addison Wesley Publishing Company:9–28.

[4] Arthur, W.B. (1994) Increasing Returns and Path Dependence in the Economy. Ann Arbor, MI: University of Michigan Press.

[5] Autor, D.H. & D. Dorn (2013) ‘The growth of low-skill service jobs and the polarization of the US labor market’, American Economic Review, 103 (5):1553–97. DOI: http://dx.doi.org/10.1257/aer.103.5.1553.

[6] Auzan, A.A. (ed.) (2011) Institutional Economics: A New Institutional Economic Theory. Moscow: Infra-M.

[7] Banke, B. (2018) ‘New wave of the digital revolution’ In B. Banke, V. Butenko, I. Kotov, G. Rubin, S. Tushen & E. Sycheva, BCGDIGITAL. http://russiaonline.info/story/new-wave-of-digital-revolution51.

[8] Bowles, S., G. C. Loury & R. Sethi (2014). Group inequality, Journal of the European Economic Association, 12 (1): 129–52. DOI: https://doi.org/10.1111/jeea.12037.

[9] Brzeski, C. & I. Burk (2015). Frankfurt: ING DiBa Economic Research. https://www.ing.de/binaries/content/assets/pdf/ueber-uns/presse/publikationen/ing-diba-economic-analysis-die-roboter-kommen.pdf.

[10] Castells, M. (1998) The End of the Millennium, vol. 3 of The Information Age: Economy, Society and Culture. Cambridge, MA, and Oxford: Blackwell.

[11] David, P.A. (1985) ‘Clio and the economics of QWERTY’, American Economic Review, 75 (2):332–7.

[12] Frey, C.B. & M.A. Osborne (2013) ‘The future of employment: How susceptible are jobs to computerisation?‘, OMS Working Papers, 18 Sept. https://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf.

[13] Frey, C.B. & M.A. Osborne (2017) ‘The future of employment: How susceptible are jobs to computerisation?‘, Technological Forecasting and Social Change (Elsevier), 114 (C):254–80.

[14] G20 Innovation report (2016) https://www.oecd.org/china/G20-innovation-report-2016.pdf.

[15] Goos, M., A. Manning and A. Salomons (2009) ‘Job polarization in Europe’, American Economic Review, 99 (2):58–63.

[16] Hodgson, G.M. (2003) ‘The hidden persuaders: Institutions and individuals in economic theory’, Cambridge Journal of Economics, 27 (2):159–75.

[17] Hvostik, E. (2018) ‘The European labor market is not keeping pace with digitalization’, Kommersant, 21 Oct. https://www.kommersant.ru/doc/3777351.

[18] Huang, M. and C. Chang (2015) ‘A comparative study on detecting research fronts in the organic light-emitting diode (OLED) field using bibliographic coupling and co-citation’, Scientometrics, 102 (3):2041–57. DOI:10.1007/s11192-014-1494-1.

[19] Kapelyushnikov, R.I. (2009) ‘Plurality of institutional worlds: Nobel Prize in Economics 2009‘, Economic Journal of the Higher School of Economics, 1:12–69.

[20] Kazakova, V.I. (2012) ‘Kontseptualizatsiya “path dependence” v sovremennoy sotsialnoy nauke’ (Conceptualization of ‘path dependence’ in modern social science) in R.E. Alekseeva (ed.) Upravlenie v sotsialnyh sistemakh. Kommunikativnye tekhnologii, 3 (in Russian), Nizhny Novgorod, Nizhny Novgorod State Technical University Alekseeva: 6–16.

[21] Krueger, A.B. (1993) ‘How computers have changed the wage structure: Evidence from microdata, 1984–1989‘, Quarterly Journal of Economics, 108 (1):33–60.

[22] Larina, T., I. Vygolova & L. Benkovskaya (2017) Statistical Study of the Human Resources Potential of the Regional Labor Market. Orenburg: OGAU Publishing Center.

[23] Lesnyh, V.V. & V.V. Ilyashenko (2009). Institutsionalnaya ekonomika (Institutional economy). Yekaterinburg: Izd-vo ‘Uralskiy rabochiy’ (in Russian).

[24] Marx, K. (1852) The Eighteenth Brumaire of Louis Bonaparte. New York: International Publishers, 1963.

[25] Matraeva, L., E. Vasiutina, S. Erokhin & O. Kaurova (2018) ‘A dynamic model in the labor market: Reasons of imbalances at the transition stage of the economy’, European Research Studies Journal, 21 (3):206–17.

[26] Matraeva, L.V., E.S. Vasyutina & T.M. Shpilina (2019) ‘Lock-in effect of digitization in the labor market’ in Education Excellence and Innovation Management through Vision 2020 Proceedings of the 33rd International Business Information Management Association Conference (IBIMA), Granada: IBIMA, 1230–7.

[27] Mokyr, J. (1992) ‘Technological inertia in economic history’, Journal of Economic History, 52 (2): 325–38.

[28] North, D.C. (1990) Institutions, Institutional Change and Economic Performance, Political Economy of Institutions and Decisions. Cambridge: Cambridge University Press.

[29] North, D.C. (1997) Instituty, institutsionalnye izmeneniya i funktsionirovanie ekonomiki (Institutions, institutional changes and the functioning of the economy). Moscow: Fond ekonomicheskoy knigi ‘Nachala’ (in Russian).

[30] North, D.C. (2005) Understanding the Process of Economic Change. Princeton, NJ: Princeton University Press.

[31] Nureev, R.M. (2010) ‘Rossiya posle krizisa: Effekt kolei’ (Russia after crisis: Gauge effect), Journal of Institutional Studies, 2 (2): 7–26 (in Russian).

[32] OneVoxPress (2020) ‘By 2022, with industrial automation, 133 million new jobs will be created worldwide’. https://onevoxpress.com/2019/06/26/by-2022-with-industrial-automation-133-million-new-jobs-will-be-created-worldwide/.

[33] Pajarinen, M. & P. Rouvinen (2014). Computerization Threatens One Third of Finnish Employment. ETLA Brief 22. http://pub.etla.fi/ETLA-Muistio-Brief-22.pdf.

[34] Polterovich, V. (1999) Institutional Traps and Economic Reforms. Moscow: CEMI RAS and NES.

[35] Senokosova, O.V. (2018) ‘The impact of digitalization on the labor market’, Economy and Business, 10 (2):81–4. DO110.24411/2411-04-04-2018-10093.

[36] Solodukha, P.V. et al. (2018) Annual Sociological Survey of the Satisfaction of Citizens with the Quality of Public and Municipal Services Provided by the Bodies of State Authority and Local Government. Research report No. GU-73-OF/D21, 14 May. Moscow: Ministry of Economic Development of the Russian Federation.

[37] Ustyuzhanina, E.V. (2015) Institutsionalnaya ekonomika (Institutional economy). Moscow: Izdatelstvo REU im. G.V. Plekhanov (in Russian).

[38] Veblen, T. (1984) Teoriya prazdnogo klassa (Theory of the idle class). Moscow: Progress (in Russian).

[39] Weber, M. (1990) Izbrannye proizvedeniya (Selected Works). Moscow: Progess (in Russian).

[40] Williamson, O.E. (2000) ‘The new institutional economics: Taking stock, looking ahead’, Journal of Economic Literature, 38 (3): 595–613.

[41] World bank data (n.d.) https://data.worldbank.org/indicator/TX.VAL.TECH.CD.

[42] World Economic Forum (2018) The Future of Jobs Report 2018. Geneva: World Economic Forum. http://www3.weforum.org/docs/WEF_Future_of_Jobs_2018.pdf.