Changes in the labor market with the introduction of scientific and technological innovations into the economy (foreign and domestic experience)

Abstract

The article presents the impact of scientific and technological innovations on the industrial structure of the tradable sector of the economy. The analysis of economic data was carried out on the basis of the VAR model by Christopher Albert Sims for 15 developed countries with open economies and without a sanction’s regime, including the Russian Federation, for the period 1995…2013. Research has shown that the greater the continuous growth of total factor productivity (TFP) in the tradable sector of the economy compared to growth in the non-tradable sector, the more labor resources move from the tradable sector to the non-tradable sector of the economy, which has a stimulating effect on the share of labor income in both sectors of the economy. A model of the influence of scientific and technological innovations on the labor market in the tradable sector of the economy has been developed. The model allows for a state with an open economy and taking into account cross-country dispersion of redistribution effects to calculate factor technological changes. The model predicts the most accurate results for states where capital-intensive industries make a greater contribution to the increase in total factor productivity of the trade sector of the economy, i. e. for states in which capital increases in relation to labor efficiency.

Keywords

• innovation
• open economy
• labor market
• production function
• labor income