Institutional Aspects and Adaptation Strategies of the Transformation of the Labor Market in Industry 4.0
TL;DR
The study identified three aspects of labor market adaptation: technological, institutional, and individual and identified that countries with a high share of the gig economy demonstrate faster labor reallocation but face increasing precarity and income polarization.
Abstract
The relevance of the study is due to the need to comprehend the processes of qualitative transformation of the labor market under the influence of technological shocks of the fourth industrial revolution (Industry 4.0), characterized by the convergence of artificial intelligence, robotization, and big data. The purpose of the work is to identify the key mechanisms of adaptation of the labor market to automation and digitalization. The methodological framework for this study is based on a synthesis of institutional economics and human capital theory, supplemented by a comparative data analysis. The study identified three aspects of labor market adaptation: technological, institutional, and individual. It was found that countries with a high share of the gig economy demonstrate faster labor reallocation but face increasing precarity and income polarization. A comparative analysis of adaptation models demonstrates that the effectiveness of adaptation depends not on the speed of technology adoption, but on the presence of shock-absorbing institutions, including continuous education systems (Lifelong learning) and the government's active policy on the labor market. The theoretical significance of the study lies in the development of a three-level adaptation model that explains the asynchronous nature of employment transformation.