The Institutional Concept of Adapting the Labor Market to the Conditions of the Digital Economy

Abstract

AbstractPurpose: The purpose of this chapter is developing an institutional concept of adapting the labor market to the conditions of the digital economy and scientific methodology of evaluating the level of the labor market’s adaptability to the digital economy’s conditions from the positions of sufficiency of the institutional provision and testing the offered methodology by the example of the modern developed, developing, and underdeveloped countries.Design/methodology/approach: An institutional concept of adapting the labor market to the conditions of the digital economy is developed. According to it, a scientific methodology of criterial evaluation of the labor market’s adaptability to the conditions of the digital economy is offered. The methodology includes the estimation criteria of institutional adaptability of the labor market to the conditions of the digital economy and the scale for criterial evaluation of sufficiency of the institutional provision for successful the labor market’s adaptability to the conditions of the digital economy.Findings: The developed methodology is used for conducting a criterial evaluation of institutional adaptability of the labor market in developed, developing, and underdeveloped countries in the conditions of the digital economy in 2020, based on the statistics of IMD Digital Competitiveness Ranking.Originality/value: It is substantiated that institutional provision in developed countries is sufficient for successful adaptability of the labor market to all new conditions that emerged in the labor market in the conditions of the digital economy and does not require development in the long-term. In developing countries, the institutional provision is sufficient for successful adaptability of the labor market to implementing digital technologies in business process and to strengthening the globalization based on digital technologies, but is insufficient for for adaptability to automatization (robotization) of business processes and to acceleration of scientific and technical progress, requiring development. In underdeveloped countries, the institutional provision is insufficient for adaptability of the labor market to the digital economy and requires accelerated development.KeywordsInstitutional conceptAdaptationLabor marketDigital economyDeveloped countriesDeveloping countriesUnderdeveloped countriesJEL CodeB52D02E02E14F55M15O14O31O32O33O38O43