CC BY
8UDC 331.5
ECONOMIC LAWS AND THE CONSISTENT PATTERNS OF THE LABOUR MARKET
Ashmarov Igor Anatolievich,
Candidate of Economic Sciences, Associate Professor of the Chair of Humanitarian and Socio-Economic Disciplines, Voronezh State Institute of Arts, 394077, Voronezh, st. General Lizyukov, 42, Russia, E-mail: dobrinka75@mail.ru, 8-951-851-6-111
Ашмаров И. А. Экономические законы и последовательные модели рынка труда
Аннотация. В этой статье исследуются экономические законы и закономерности рынка труда, представляющие основу взаимодействия его основных аналогов. Приведены возможные варианты классификации экономических законов и закономерностей, последовательных моделей, алгоритмов рынка труда, из которых они следуют.
Ключевые слова: экономические законы и закономерности, концепция и теория алгоритмов экономики, экономика рынка труда.
Ashmarov I. A. Economic laws and the consistent patterns of the labour market
Abstract. In this article, economic laws and the laws of a labour market representing a basis for interaction of its basic counterparts are investigated. Possible variants of classification of economic laws and the consistent patterns, algorithms of a labour market which of them follow are resulted.
Key words: Economic Laws and the Laws, Concept and the Theory of Algorithms of Economy, Labor Market Economy.
I. INTRODUCTION
The subject of studying the general economic theory (Economics) is, as it is known, firstly, economic relations, secondly, economic categories and, thirdly, economic laws and patterns, which are of special scientific interest for the real researcher-economist.
One of the most significant economic laws in general, and especially in the light of understanding economic theory, are laws and patterns relating to exchange as a sphere of social reproduction, including exchange in the labor market.
«Remove the exchange. Destroy mentally the productive institutions of modern society. This would mean destroying much of what is known as «civilization»; it would mean that the individual remained face to face with nature and is forced to deliver his sustenance through his efforts and her generosity» [3, p. 41]. Paying close attention to the laws of the economy, J.B. Clark wrote about this: «... the laws of
exchange are definitely the social laws of the economy, as they explain the organization of society in productive groups and the organization of each group in classes of workers, owners of capital and entrepreneurs. They also explain the mutual relations of these groups and classes with each other» [3, p. 38]. Thus, if we know the essential economic laws, then we have a «set of truths» that «make it possible for us to study social problems without extensive introduction to it» [3, p. 40]. Therefore, the classification and systematization of economic laws and laws is, in our view, the most important task of general economic theory.
«Every economic law is an expression of both qualitative and quantitative aspects of economic phenomena and processes in their unity and serves as an internal measure of these processes. Economic laws operate and manifest themselves only through the subject-labor and production activities of members of society» [2, p. 621-622].
«Although in economic theory there are no well-established universal laws, and existing ones have a predominantly trend form, they can always distinguish between the mechanism of action and the mechanism of use. The actions of any economic law are not subject to the subjective activity of people, regardless of whether they know the mechanism of its action or not. In the latter case, people, not knowing the trends of economic development, can interfere with their activities by their activities, violate these trends. Therefore, in order to promote economic development, it is necessary first of all to learn the essence of economic laws, the mechanism of their action and only then to carry out economic activity, guided by these laws» [5, p. 23].
II. METHODOLOGY
The aim of the study is theoretical and methodological analysis of the essence, quantitative and qualitative characteristics of the labor market in the modern economy. The theoretical and methodological basis for the study was the works of Russian scientists in such branches of social knowledge as the Labor Market Economy.
The traditional approach to the notion of an economic law is its interpretation as an objective necessary link between production and consumption. However, it is well known that the reproduction of economic systems involves not two but four phases. Therefore, the laws of distributive relations and the laws of exchange relations are no less important for the integrated assessment of economic systems. Social and labor relations, as well as any other economic relations, are subject to the impact of economic laws and laws. These are the economic laws and the consistent patterns of the labor market.
III. RESULTS
We can call here the universal laws of the economy, directly related to the labor market:
1. The law of the social division of labor. Labor is gradually becoming more complex and taking different forms of its specialization to create a more perfect product of labor.
2. The law of change of labor.
For a combination of reasons, including because of the social division of labor, there is a change in jobs and labor functions of workers.
3. The law of labor saving.
Every worker is capable of producing an increasing number of products of labor, so the need for additional manpower is reduced, and in capital is increasing. In the workplace, there is also a compulsion to save working time, and consequently labor, because labor must be paid for. The law of saving labor is closely related to the law of saving time [7, p. 88-89].
4. The law of distribution according to
work.
The product of labor is distributed in strict accordance with the quantity and quality of the labor invested in it.
5. The law of growth of labor productivity. The productivity of labor on the basis of large-scale machine production increases due to the increase in the use of machines and mechanisms and the growing volumes of processed raw materials.
6. The law of marginal productivity of labor or the law of diminishing returns. «Add capital in successive units to an unchanged number of employees, and you will everywhere get a smaller addition to your product. This is a universal law that deeply affects the behavior of people ... This principle produces a social effect, acting on the determination of how many workers and how much capital will be available in one of the industries under a civilized state» [3, p. 49]. «The cultivated land rewards labor and capital, the less generously, the more labor and capital is attached to a given area.» This law «is the law of the changing effectiveness of labor, which underlies the natural wages» [3, p. 50].
7. The law of marginal utility.
«There are no markets in a wild country; but still the law of marginal utility, which manages the markets, operates here too. There are no wages and interest payable in the hermit's household; yet the law of marginal productivity of labor and capital acts here, as everywhere else». [3, p. 49]. «The law of marginal utility ... manages the purchases made in the modern market, manages also the production of an isolated person and is a universal law of the economy
In modern life, these laws direct public demand for various goods offered in stores; ... they control the way through which a person disposes of his productive power and uses it where it brings him the greatest benefit. The law of marginal utility is common to both types of economy». [3, pp. 44-45]. All these economic laws belong to the field of universal truths of economic science.
We also single out general economic laws that apply in any market, including the labor market:
1. The law of demand. The rise in prices leads to a decrease in the demand for goods, other things being equal economic conditions.
2. The law of supply. With the increase in prices for goods, the volume of supply of this product increases, all other things being equal.
3. The law of value. Labor products can be exchanged (through sale and purchase) at a cost based on socially necessary labor costs.
4. The law of conformity of the price to the quality of the goods. The price level corresponds, as a rule, to the quality of the products produced.
5. Law of distribution of prices. In any market, prices are distributed to different segments, satisfying the needs of different customers in terms of prosperity. This allows the buyer to save, consistently approaching the lowest price offered in this market.
6. The law of market disequilibrium.
This law captures the discrepancy between supply and demand in the market (it can also be called the anti-Saya law). In any modern market, supply and demand will never be able to exhaust each other's volumes, therefore, to balance.
7. The law of competition. In the markets there is always a clear and implicit struggle for economic resources and vital benefits.
8. The law of comparative advantage.
The comparative advantage obtained by
the subject on the basis of production and / or market competitive relations and recognized by the market in the course of competitive struggle is the basis for achieving the desired production and / or market position.
And, finally, we single out specific economic laws that act on the labor market:
1. The law of Arthur Oaken. The main economic consequence of excessive (cyclical) unemployment is the underutilization of labor and, consequently, the underproduction. If the economy is not able to provide enough jobs, part of its production potential is lost irrevocably. The difference between the potential and actual level of real GDP is called the GDP lag.
A. Oaken in mathematical form expressed the relationship between the unemployment rate and the GDP gap: «if the actual unemployment rate exceeds the natural unemployment rate (which is approximately 5-6%) by 1%, then the GDP gap is 2.5%». With a small annual increase in real GNP (not exceeding 2.5%), the unemployment rate remains almost constant, and with a deeper change in GNP, 2% of its changes cause a shift in unemployment in the opposite direction by 1%.
2. The law of the circulation of labor in the labor market. The amount of labor that functions for a certain period of time on the labor market is defined as the product of the number of labor contracts (contracts) concluded for a certain period of time (usually per year) by the average price
(average wage) divided by the labor turnover rate.
3. The law of the correspondence of price to the quality of labor. An employee receives a salary that he deserves, or with which he himself agrees.
4. The law of the disequilibrium of supply and demand in the labor market. On the modern labor market, there is an appeal of excessive active labor and unfilled jobs in the sphere of production. For example, there are more than 7.5 thousand unemployed in the Lipetsk region - more than 7,5 thousand unemployed - that is almost the same number - of free jobs declared by employers in the employment service bodies [9, p. 1-2].
5. Law of competition in the labor market. In the labor market, there is a clear and implicit struggle for the best jobs and the best trained cadres.
6. The law of reimbursement of labor
costs.
The level of wages offered to the employee in the labor market must correspond to the standard of living sufficient for the reproduction of the strength and health of the worker. «The cost of labor is the cost of the means of subsistence necessary to sustain the life of its owner ... The owner of the labor force who has toiled today must be able to repeat the same process tomorrow under the same conditions of strength and health. Consequently, the sum of the means of subsistence must be sufficient to support the working individual as such in a state of normal vital activity. So, the cost of labor is reduced to the value of a certain sum of means of subsistence» [6].
7. The law of distribution of wages in the labor market. The wage rates are distributed in the labor market in accordance with the complexity of labor and the competence of the employee performing it. If the complexity of labor is high and the employee fully meets the requirements set for him, then the pay will most likely be high. If it is necessary to perform a simple labor operation, and the employee does not require
special knowledge, skills, then the remuneration of labor here will be low and even low. Thus, «the specific productivity of labor determines the amount of wages». This means that «payment is consistent with the amount of product specifically attributed to any unit of labor from a given composition of labor» [4, p. 47].
8. The law of the reproduction of labor in the labor market. «The owner of the workforce is mortal. Therefore, in order to constantly be present on the market - and this is exactly what is required for the constant transformation of money into capital - the owners of the labor force must perpetuate themselves, «as any individual, that is, by reproduction «. Labor forces retiring from the market due to wear and death of individuals must be replaced by at least the same number of new labor forces» [6, p.113].
9. The law of marginal utility of labor (labor), or the law of diminishing returns (productivity) of labor. «This law determines the amount of labor it is more expedient to distract from the delivery of what directly serves our needs in order to produce additional implements» [3, p. 48]. The marginal worker hired for work will bring the firm an income equal to the costs that go to its maintenance. The firm will refuse to hire such an employee.
The effect of economic laws manifests itself not only separately, but also acting in the aggregate, within the framework of a certain economic regularity. In our opinion, we should distinguish:
1. The pattern of the emergence and evolution of the labor market. The pattern of the emergence and development of the labor market institution is determined by the pattern of the development of the social division of labor. This process consists of moving from simple to complex, from small to large, from local to national and world markets.
The Institute of the Labor Market has emerged not accidentally, but to meet the
needs of employers in workers' hands and workers in the workplace. The labor market exists practically in all countries of the world. Evolution is also natural: first, there is a local, regional, then national and, finally, the world labor market.
Each historical stage of economic development is characterized by its borders and the geography of the labor market. For the era of early antiquity and early feudalism, such boundaries initially were the boundaries of the polis (urban), local market. In the later period of empires, the first large states, characterized by a strong central state power, territorial borders expanded to the national market and wide commodity circulation. «Commodity circulation is the starting point of capital. It appears only where commodity production and developed commodity circulation, trade have reached a certain level of development. World trade and the world market open in the XVI century the history of the life of modern capital. « [8, p. 93].
Together with capital in the period of its initial accumulation, the formation of a labor market of a modern type is taking place, since, as proved by K. Marx, the process of converting money into capital without wage labor can not take place.
2. Regularity of competition development.
The pattern of development (strengthening) of competition is inherent in economic relations. It assumes that the market entity, entering into market competitive relations, seeks and effectively uses all new and new opportunities. «The pattern of competition development thus fixes the main reason for the search for new opportunities - the existence of competitive relations» [6, p. 102].
3. Regularity of state regulation. The labor market in many countries of the world is subject to state regulation and close attention on the part of state authorities. The situation on the labor market depends on the state economic policy in general, especially
on the monetary policy of the central bank of the country.
4. The pattern of unemployment in the national and world economy. The so-called «Natural level» of unemployment in the economy in the range of 5-7%. Therefore, in the labor market, there is always a certain amount of free (excess) labor, which is necessary primarily for the functioning of the economic system, for example, for the sphere of production. This labor force is drawn on the labor market, meeting the basic needs of the participants in the process of reproduction.
5. Regularity of the recruitment system on the national labor market. In the countries of the world operates its own national recruitment system. For example, in Japan there is a so-called «Lifelong hiring» when an employee acquires skills and skills in one company.
6. Regularity of employment through the mechanism of the labor market and employment of workers. Specialists without experience and skills of work are reluctant to accept, and professional dynasties provide an opportunity to find work with the help of kinship ties, skills and experience that children adopt from their fathers.
7. Regularity between the level of inflation and the level of unemployment in the economy. It was not by chance that J.M. Keynes considered paper money subject to mandatory state regulation as a means of securing full employment and advocated for their widespread introduction and use in exchange for a gold standard. With rising inflation, unemployment is falling. Reduction of inflation, as a rule, is associated with an increase in unemployment (Phillips curve).
8. Regularity of the labor market and the development of the national economy. Effective management of the labor market and the use of available labor resources allows for a faster development of the economy as a whole.
9. The pattern of institutionalization of the labor market and the evolution of its
economic institutions. All the economic institutions of the labor market are not once and for all data, they change together with the economy as a whole, are transformed with it, the old economic institutions are replaced by new, more effective and perfect institutions. Labor market institutions that ensure its effective functioning have historically evolved over time and are transformed into new economic institutions. As a result, the labor market is increasingly institutionalized, acquiring new institutional forms for labor relations of key market participants.
10. The pattern of national identity and the specifics of the labor market in various countries of the world. Labor markets around the world have their own national characteristics and function within the framework of the institutions established in these countries, represented by labor practices, rituals and traditions.
11. The pattern of informatization, that is, the increase of informativeness, information saturation of the labor market. Prices (in the sense of relative prices) are the main source of information on the market. Equally, wages, like the price of the labor market, are exactly the same source of information for the main participants in the labor market. The notion of «information» can even replace the concept of «competition» and become a base for the analysis of all markets, including the labor market.
12. Uneven development of labor markets. The uneven development of labor markets, including local, regional, national markets, is due to a number of historical factors, and also because of the uneven activity of economic entities at the level of local labor markets. This is an objective law that arises in the conditions of the formation of a new institutional environment, connected with the presence of external effects, administrative barriers, etc. [3, p. 7]. On the basis of the laws of the labor market, it is possible to compile economic algorithms,
for example, the labor market functioning algorithm, the employment management algorithm, the unemployment risk management algorithm, and the technology for forecasting unemployment risks, etc.
IV. CONCLUSION
The economic institutions of the labor market are affected by all the economic laws mentioned here. They also act under the great influence of the regularities that have developed in the sphere of the labor market and employment [1, p. 171].
We come to the conclusion that the effect of economic laws manifests itself not only separately, but also acting in the aggregate, within the framework of a certain economic regularity. In our opinion, we should distinguish: 1. The Universal Laws Of The Economy; 2. The General Economic Laws; 3. The Specific Economic Laws; 4. The Consistent Patterns of The Labour Market.
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