The main approaches to the study of employment

Conceptual basis of employment

The main approaches to the study of employment

Employment is the most important element of social and labor relations. It is a complex multidimensional phenomenon. In order to give a more complete definition of this concept we should explore traditional methods of research. Traditional approaches are the bases for the development of innovative employment concepts. In addition to traditional approaches, there are new concepts, their integration into the overall concept will help the state, entrepreneurs and employees to communicate more effectively in the innovation economy. If the development of methodological basis for research of employment will be considered by a single concept, which will interact with traditional and new approaches to this field, then it will generate employment and develop innovative type.

As you know, each stage of economic development of society corresponds to a certain structure of employment. At the moment, the national economy of Russia acquired a tendency to innovation. A new concept is an innovative economy. In this concept it is important to clarify the meaning of the term innovation. Therefore, it is such an economy, the functioning and development of which is associated with innovation. "Innovative economy (knowledge economy, knowledge-based economy) - the type of economy based on the flow of innovation, constant technological improvement, in manufacturing and exporting high-tech products with a very high added value and the technologies themselves." The innovative economy is also one of the sectors of the economy.

Each stage of development of socio-economic system corresponds to a certain concept of employment, reflects the essential processes of the functioning of the system. Professional employment is not just a basis for the existence of society, to economic growth and macroeconomic stability, but also essential for "inclusion" of individuals in social production, formation and development of human resources, improve the quality of life of the population. Innovative economy with high information and intellectual "capacity" adequate innovative type of employment - a flexible, dynamic, efficient, involving constant innovation, new content, structure, types, forms of employment, improving the quality of human capital, implementation of intellectual and creative potential of the population in employment.

Provided dramatic changes of technical, socio-economic and institutional plan, implement changes not only in the system of employment, its regions, its structure and forms, institutions of the category of "employment", as well as in theoretical and methodological approaches of its research and management. A study of the current system of employment needs in the design, which in turn will allow more adequately reflect changing significantly the object of research, to allocate its characteristic parameters and trends of development at the present stage.

Development of the theory of employment takes place in conjunction with the economic practice, soaking scientific ideas that emerged in the course of explaining the new phenomena and processes in this area, and find a solution to the existing problems.

The study of the nature of employment has a rich history, beginning with the classical theories and definitions and explores contemporary economic schools. Theoretical aspects of employment are presented in the concepts of different economic schools of J. Atkinson [] J. Keynes [] Marx [] A. Marshall [] W. Eucken [] M. Friedman [] FA Hayek [] , Pigou, and others. Today highlights the main theoretical paradigms defining approaches to the research of employment and the labor market:

Employment problems were solved in many economic schools. In this regard, there are employment theories [17, pp 203]:

1. The classical theory of employment.

2. Marxist theory of employment.

3. The neoclassical theory of employment.

4. The Keynesian theory of employment.

5. Institutional Theory of Employment.

Consider the classical theory of employment. Its representatives believed that work just like any other commodity, it has some natural price. Under the natural price of labor is understood as the level of wages, which provides a simple reproduction of the working class (his constant number), and the amount of labor supply is equal to the operating fund. The natural price of labor is equal to the cost of a minimum set of means of subsistence, which allows you to work on a daily basis to restore the ability to work and thus to raise the necessary replenishment of the working class. This provision in the classical theory called the "iron law of wages."

Next this theory is Marxist Theory of Employment. Theory of Employment, which deals with labor and capital, was proposed by Karl Marx in his work "Capital". [14]

Marx distinguished two types of capital. Permanent capital is the cost of the means of production and variable capital is the cost of labor, in other words the total amount of wages. The demand for labor in the Marxist theory of employment is equal to the variable capital, which depends on the amount of capital and the proportion of variable capital in it. Scientific and technological progress affect the total amount of capital in society (it increases), and the proportion of variable capital to total capital (it is reduced). As a result, the amount of variable capital in society is reduced over time. Accordingly, the demand for labor is also reduced. As Marx pointed out, the increase in labor demand, which would cause the application seeking additional capital, offset by the unemployed, laid-off due to the increase of the productive power of machines.

Population excessive compared to the average demand in the capital increase, Marx called the relative excess or additional labor population. Relative overpopulation is that the background against which the law of supply and demand. This is the provision in the general law of capitalist accumulation.

Marx identified two main reasons for the existence of unemployment under capitalism. The first deal with the development of scientific and technological progress, the second is connected with the existence of private property.

Consider another theory - the neoclassical theory of employment. In the neoclassical theory of employment supply and demand act as equal employment factors. The neoclassical approach to the problem of employment involves the joint consideration of all labor markets. The complexity of the analysis in this case is that workers move from one market to another, and hence the phenomenon of employment cannot be examined in the suit at an isolated market. Within the framework of the neoclassical theory of the phenomenon of employment described more fully in the case when labor markets are all in the same state. The main cause of unemployment appears inflated (relative to the equilibrium level) wage rate. However, in the long run, the "invisible hand" of the market will automatically eliminate unemployment.

Next theory is Keynesian theory of employment. Instead of microeconomic concepts of "market demand" and "value proposition" John. Keynes [16] introduced a macroeconomic concept of "aggregate demand" and "aggregate supply".

By aggregate supply J. Keynes knew the real volume of the social product (GDP), which is willing and able to make a firm at a given price level. Aggregate supply curve of George M. Keynes consists of three sections: horizontal, inclined or vertical. The price level increased with increasing rate of growth of employment in the economy. The increase in the level of wages in the economy causes two opposite effects. On the one hand, the level of costs in the economy increases, which creates prerequisites for the growth of unemployment. On the other hand, there are increasing income levels, which create conditions for reducing unemployment. The most effective way to combat unemployment is accourding to George. M. Keynes system is to increase income per capita at constant level of costs in the economy.

The last of the theories is institutional. In the framework of actions of economic agents due not so much trying to maximize profits, as the desire to appropriate institutional regulations. The first generation of institutionalists promoted the vision of the labor market, other than an alternative model of the labor market in the classical economic theory. It provides the intellectual basis of the active role of the state in employment. In later institutionalists analysis the concepts of labor institutions are based on the collective.

Table 1 - Aspects of the Theory of Employment comparisons

So, table 1 presents comparative characteristics of Keynesian, classical, neoclassical and Marxist theories of institutional employment. It makes it clear how to conduct research employment for many years. As highlighted important aspects, such as the main factor of employment and the causes of unemployment in all the theories. It will analyze in more detail the new type of employment, indicate the main problems of employment and consider its modern trends.

These approaches were developed in the works of Russian authors, the central of which are the works of L. Kiyan [] LS Chizhov [] ER Saruhanov [] AE Kotlyar [] and OA Katsuk []. Domestic researchers also do not have preconceived opinions about the content category of "employment", as well as such concepts as "productive employment", "optimal time", "rational employment", "productive employment".

Analysis of domestic literature on employment shows that the work of local authors can be divided into three groups: the first is formed by those who were not related to the scientific tradition prevailing in the countries with developed market economies. The second group is represented by the authors, whose position is more mixed. Studies of the third group are visibly traits prevailing abroad scientific traditions analysis of employment. Also, the positions of all the above presented domestic authors, related to the study of employment, can be represented in terms of the different interpretations.

First, the traditional interpretation of labor as productive resources means analysis of employment in terms of the use of labor in the social production. In this regard, domestic authors identify three aspects of the analysis in terms of employment:

• meet the needs of the active population in jobs in the public work;

• production

• correspondence between the demand for labor and jobs.

Secondly, the recognition of employment is not only an economic necessity but also a social necessity. Through employment realized one of the most important personal freedoms and rights of citizens - the right to work. The integration of fundamental civil rights, economic and social sides of the employment noted by the authors of collective work edited by LS Chizhova:

• existence of a close connection with the employment of the constitutional right of a person to work;

• determines the level of employment and decent living conditions for the existence of the worker and his family;

• basis for growth and well-being of every society as a whole serves the formation of motivation;

• the impact on employment rights, disclosure and increase its professional capacities, promotion of personal development, the emergence of new needs and its interests.

Third, the study of the market mechanism (is) in the field of labor and employment (is) in the tradition of Labor Economics. This approach allows studying the behavior of employees and employers as a result of the impact of incentives in the form of wages, prices, profits and the influence of non-monetary factors and government policy on the employment relationship.

Fourth, the interpretation of the legislation from the standpoint of employment as "activity of citizens related to the satisfaction of personal and social needs, they do not contradict the legislation of the Russian Federation and bringing them tend to labor income."

The economy of any developing country (is) under the influence of various conditions, such as political, social, cultural and others. In turn, it acquires certain characteristics, which affects the level of macro-economic indicators, including in employment. At the present stage of development the Russian economy acquires new features influenced the development of innovation, that economy become intellectually capacious and informative. This development is predetermined along with traditional approaches of the theory of the emergence of new employment approaches and understanding of the employment of innovative type.

Referring to the existing methodology for the analysis of employment, this in addition to traditional approaches supplemented with new approaches to the art such as:

• synergistic (representatives in EN Grebenuk);

• riskological (representatives in Lopuchin VY);

• evolution (representatives R. Nelson and S. Winter).

Analysis of a number of studies has shown that, in assessing the innovative type of employment must be based on a number of paradigms.

Synergetic Paradigm study suggests a vision of the employment system as an open dynamic, self-regulating, self-developing and actively interacting with the external environment of the system in a state of equilibrium, or outside it. Employment refers to the self-organizing systems, as it is - a dynamic system that can change during the operation of its internal relationships, order and organization, depending on the factors influencing it, is not beyond the critical mass of the system.

Great potential in the study of innovative type of employment laid down in the evolutionary paradigm. The evolutionary approach allows you to modify and extend the principles of the system analysis of employment. In particular, it helps to explain the emergence of new qualities of employment in the course of evolution. According to the evolutionary approach, the historical trajectory of employment is always natural, they are written in the internal mechanisms. The evolutionary approach to the analysis of a new type of employment allows you to distinguish between "routine" and "search" in the behavior of the subjects of employment. As a "routine" at the firm allocate sustainable technology, management and other operations (it's habits, patterns of behavior of the company).

Since many of the innovations in the labor behavior of workers associated with the high level of uncertainty of the result (income, costs, status), it is advisable to get a complete vision of the possible hazards associated with the development of innovative types of employment, which allows the use of riskological approach with its axioms of comprehensiveness, affordability, non-repeatability. "Riskological employment" is a fundamentally new approach to the study of employment. The risk generated by the nature of the activities themselves subjects of employment who take decisions based on their expected return as the "assets" (intellectual, human capital, etc.), and the reliability of their "investments" (employment stability, a high level of income, professional development) . The risk of employment suggests the likelihood of unintended consequences of possible decisions (economic, organizational, technical, political) in this area, the loss of the ability to bring stakeholders in the implementation of their employment interests.

Summarizing the above, it should be noted that at this stage of economic development there is a number of reasons that directly affect all spheres of human activity, such as:

• globalization,

• acceleration of the pace of life,

• transition of human interaction in WANs Intranet that for a moment, capable of carrying large volumes of information

In view of this and transformed the character of labor relations, changes are made in the social sphere of life of workers and employers, as well as a modified administrative processes in general. The dynamism of modern life and mobility, which provides a person the latest technology allow for a fresh look at the question of the organization of working time and space. This phenomenon gradually forms a new activity - an innovative employment.

Table 2 Aspects of the economic content of the employment research approaches

The analysis allows us to conclude that the analytical capabilities of traditional approaches in relation to the investigation of an innovative type of employment are limited due to the following new areas:

Firstly, the study reveals a new type of employment failure neoclassical interpretation of the rationality of economic agents. In modern conditions of rational behavior should be analyzed with neoinstitutional positions as a variable amount depending on the complexity of the situation of choice, its repeatability available to the decision-maker of the individual information as well as its degree of motivation (D. North).

Second, the complexity of the investigation and assessment of modern employment relations are closely intertwined with the normative beginning (ideology, politics).

Third is the theoretical generalization. Intellectual creative work is an integral part of a new type of employment. Expanding the space complex, multi-functional intelligent activity involves the transformation of performance indicators and measurement work.

Along with the traditional approaches the study of employment, there are new and each of them brings to the traditional something new:

1. A synergistic approach gives a new vision of development problems of employment, as well as its self-organization in the innovation economy.

2. The evolutionary approach allows you to modify and extend the principles of the system analysis of employment. In particular, it helps to explain the emergence of new qualities of employment in the course of evolution.

3. Risk approach helps to get a complete vision of the possible hazards associated with the development of innovative types of employment

Research the type of innovative employment should be based on the research program as a collection of theories that are based on a solid core surrounded by auxiliary hypotheses designed to bear the burden of inspections. Development of methodological basis for research of employment, considered by the single concept allows interacting traditional and new approaches to this area, which in turn will generate employment and develop innovative type. But in order to generate employment and develop innovative type, it is necessary to understand the meaning of this term, to determine the structure and select the options that will distinguish it from total employment.