Economic Bulletin of the National Mining University

 

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Issue:2019 №1 (65)
Section:Economic theory
UDK:330.341:316.334
DOI:https://doi.org/10.33271/ev/65.061
Article language:Ukrainian
Pages:61-72
Title:Institutional changes in the social sector of the national economy: external trends and internal contradictions
Author:Bagmet K. V., Sumy State University
Annotation:The author proposes a conceptual approach to explain the institutional changes in the social sphere of the national economy as a result of the influence of the globalization processes and the development of human capital as a determining factor in the socio-economic progress of states at the contemporary stage. Based on the analysis of the literature covering the impact of globalization on national economies, the author outlines the directions that globalization affects the institutional changes in the social sector: the growth of the role of human capital under conditions of knowledge economy formation, the change in the employment structure of the population, the change of institutions of higher education and their convergence. The comprehensive research of the role of human capital for a group of countries is carried out, based on the analysis of the human capital index to GDP per capita ratio and the analysis of the dynamics of growth of productivity per employee, including their volatility.The results of the analysis of the employment structure showed different trends for the countries of different groups based on the indicator of the share of employed in material production for both the advanced and the transition economies. Developed countries show a steady decline in this indicator, while developing economies have been growing since 2008. Many countries are characterized by a shift in labor market institutions, at the same time fiscal and budget sustainability is worsening. The change in the institutions of education and the convergence of higher education has been investigated based on an analysis of the strategic development documents of individual countries and the European Union. Improving the efficiency of the educational system and facilitating the entry of young people into the market is only possible if new institutions are formed in the system of education. Considering education, the most significant factor influencing the rate of change of economic institutions, the author identified two channels of influence of institutional changes in education on the intensity of institutional changes in the national economy: 1) the level of education of a person influences the level of its rationality. 2) the development of social sciences potentially increases the supply of new institutions that are necessary for the development of modern society. 
Keywords:Institutions, Institutional changes, Social sector, Human capital, Globalization, Knowledge economy, Employment structure, Education, Convergence
File of the article:EV20191_061-072.pdf
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