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Efficiency of using labor in integration coordinates: experience of neighboring countries

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Article(ENG)(.pdf)

Relevant is the research of features of market relations formation and development in labour sphere in post-Soviet countries that chose the same Euro-integration path of development with Ukraine. Author provided trend analysis of the competitiveness index and sub-indices in selected countries. By identifying main problems and bottlenecks in the functioning of the selected countries’ labour market, we have established common and unique characteristics and, consequently, possible ways to mitigate the significant social risks.

Most acute among them are problem of inefficient employment, large-scale prevalence of informal employment, and inadequate system of labour compensation. Comparative analysis shows that for neighbouring countries that are not EU members (Ukraine and Moldova), a characteristic phenomenon is a significant and unjustified differentiation of wages and the incidence of illegal practices in the workplace. In addition to purely economic factors and the almost complete absence of the use of fiscal instruments, which could stimulate the use of the labour services in the economy’s formal sector, the weak control function of the respective bodies in these countries should be highlighted. Particularly acute problem of use of informal payments appears to be for Ukraine, which complicates the problem of social and labour sphere.

The author used the following methods: statistical, analogy, comparison. Proposed are the measures for the approximation of the minimal wage up to the European standards, reduction of informal employment, and improvement of the social protection system of the unemployed. It is proved that the regulation of the minimum wage, as the most essential regulator of the labour market, has both positive and negative characteristics and consequences for the social and labour sphere. For the comparative analysis of regulatory impacts of the minimum wage Moldova and Ukraine were chosen.

Author has studied the peculiarities of structural changes of employment in the neighbouring countries. This allowed validating the change in the sectoral ratios of employment in Ukraine, which is caused not only by economic factors, but also by the integration and disintegration processes, and it explains the phenomenon of deindustrialization and deagrarization of labour in Ukraine.

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