Formation of supply in the labor market. Factors shaping supply in the labor market

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Supply and demand in the labor market- demand and supply for labor force, formed in the labor market.

Labor demand (Denand for labor), the subjects of which are business and the state, is inversely related to the amount of wages. In the event of an increase in wages, the employer will be forced to reduce the number of employees he hires (the demand for labor will decrease), and in the event of a decrease in wages, he will be able to hire additional employees (the demand for labor will increase). This relationship between wages and labor demand is expressed in the labor demand curve.

This graph illustrates the relationship between the amount of wages \ mathrm W and the amount of demand for labor \ mathrm L. Each point on the curve (\ mathrm D) _ \ mathrm L shows what the demand for labor will be at a certain level of wages. The negative slope of the curve illustrates the tendency of an increase in the demand for labor at low wages and, accordingly, a decrease in the demand for labor at high wages.

Factors determining the demand for labor:

Wage... All other things being equal, the relationship between the volume of demand for labor services and its price is inverse.
End product demand... The higher the demand for the final product, the higher the demand for labor.
Interchangeability of factors of production... If the price of labor is high, then it will be replaced by cheaper factors of production.
Employee qualification level... The level of qualification, other things being equal, presupposes a higher marginal productivity, which leads to the substitution of labor for less profitable factors of production.
Marginal profitability of labor... In the market of perfect competition, the volume of demand for labor will increase until the marginal income from the use of the labor factor is equal to costs, i.e. wages ((\ mathrm (MRP)) _ \ mathrm L \; = \; \ mathrm W)

Labor supply (Supply of labor), the subjects of which are households, is in direct proportion to the amount of wages. In the event of an increase in wages, sellers of labor services (in other words, employees) will increase the supply of labor, and in the event of a decrease in wages, the supply of labor will decrease. This relationship is illustrated by the labor supply curve.

This graph illustrates the relationship between the amount of wages \ mathrm W and the amount of labor supply \ mathrm L. Each point on the labor supply curve (\ mathrm S) _ \ mathrm L shows what the amount of labor supply will be at a certain level of wages.

Factors determining the labor supply:

Amount of real wages... The relationship between real wages and the volume of labor supply is direct (the higher the wages, the greater the supply of labor).
Employee strategy... The employee invests time and money in improving their own production capabilities through education.
Time... A person faces an alternative to the distribution of the time of day: if he rests more, then there will be less time for work. It is influenced by two effects that are also inherent in markets for goods and services - the substitution effect and the income effect. Substitution effect means the crowding out of free time by the time of labor. Income effect manifests itself in a fall in the supply of labor with an increase in wages. Those. when the employee reaches a certain level of income and material well-being, he devotes more and more time to rest and other pastime. At the same time, they take into account the lost earnings, which could have been in case of giving up leisure.

The graph illustrates a supply curve that is slightly different in configuration. It's all about substitution and income effects. Initially, the supply curve, as expected, has a positive slope and moves away from the ordinate axis. Those. with an increase in wages, the supply also increases. Moreover, with the increased wages, each hour of the worked time is valued by the employee more, and the hour of free time is perceived by him as a lost profit. Therefore, free time is replaced by working time. This displacement effect on the graph appears on the curve (\ mathrm S) _ \ mathrm L to the point \ mathrm M. Wages, having reached their possible maximum at the point \ mathrm M, leads to a reduction in the supply of labor. This is due to the income effect. Those. with an increase in wages and reaching a certain maximum, the employee has a high level of well-being. He begins to devote more time to his leisure time, because the income is now quite high and it is not necessary to devote all the time to the work process.

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Keywords

LABOR MARKET / LABOR OFFER / JOB SEARCH/ CONDITIONS / BACKGROUND AND FACTORS FOR FORMING AN INDIVIDUAL OFFER / STAGES OF THE PROPOSAL FORMATION PROCESS / MOTIVATION-CORRECTIVE PROPOSAL / LEVELS OF PROPOSAL FORMATION/ LABOR MARKET / LABOR SUPPLY / SEARCH WORKPLACE / CONDITIONS / PREREQUISITES AND FACTORS OF FORMING INDIVIDUAL SUPPLY / STAGES OF PROPOSAL FORMATION PROCESS / MOTIVATIONAL AND CORRECTIVE PROPOSAL/ LEVELS OF SUPPLY FORMATION

annotation scientific article on economics and business, the author of the scientific work - Vladimir Georgievich Bylkov

In modern conditions of the development of the labor market, the issues of the optimal balance of supply and demand are of particular importance. Traditionally in the theory and practice of studying the formation processes job offers the factors associated with the level of wages were highlighted. Further development of the labor market theory involves the study and disclosure of the nature and content of the proposal. Revealed the probabilistic nature of the formation of supply in the labor market. This is due to the fact that the methodological definition of the proposal is the motives and desire to get a job, a job. The factors that form the supply of an individual labor force, which are of a motivational and corrective nature, are highlighted. Investigating the influence of external (objective) and internal (subjective) factors, the author defines the conditions and prerequisites for the formation of a proposal, identifies the stages of transformation. It is emphasized that in modern conditions the proposed approaches to the development of the labor market acquire the key issues of coordinating supply and demand in the labor market, depending on the nature and processes of the formation of needs in labor activity.

Supply on the Labor Market: Methodology, Nature of Formation

Issues of the optimal correlation of supply and demand take on particular importance in the current context of the labor market development. Traditionally, in the theory and practice of studying the processes of labor supply formation, factors related to the compensation rate have been revealed. Further development of the labor market theory involves study and disclosure of the nature and content of the supply. The article reveals the probabilistic nature of the supply formation on the labor market. This is due to the fact that the methodological definition of the supply is a motivation and desire to get a job or work. The article identifies the factors forming the supply of individual labor, which have a motivational and corrective nature. While investigating the influence of external (objective) and internal (subjective) factors, the author determines the conditions and prerequisites for the supply formation and identifies the stages of transformation. It is emphasized that in the current context the proposed approaches to the labor market development take on the key issues of supply and demand coordination on the labor market, depending on the nature and formation processes of a need for labor activity.

The text of the scientific work on the topic "Supply on the labor market: methodology, nature of formation"

V. G. Bylkov

Baikal State University, Irkutsk, Russian Federation

OFFERED ON THE LABOR MARKET: METHODOLOGY, NATURE OF FORMATION

ANNOTATION. In modern conditions of the development of the labor market, the issues of the optimal balance of supply and demand are of particular importance. Traditionally, in the theory and practice of studying the processes of formation of the supply of labor, the factors associated with the level of wages have been singled out. Further development of the labor market theory involves the study and disclosure of the nature and content of the proposal. Revealed the probabilistic nature of the formation of supply in the labor market. This is due to the fact that the methodological definition of the proposal is the motives and desire to get a job, a job. The factors that form the supply of an individual labor force, which are of a motivational and corrective nature, are highlighted. Investigating the influence of external (objective) and internal (subjective) factors, the author defines the conditions and prerequisites for the formation of a proposal, identifies the stages of transformation. It is emphasized that in modern conditions the proposed approaches to the development of the labor market acquire the key issues of coordinating supply and demand in the labor market, depending on the nature and processes of the formation of needs in labor activity.

KEYWORDS. Labor market; labor supply; job search; conditions; preconditions and factors for the formation of an individual proposal; stages of the proposal formation process; motivational and corrective proposal; levels of formation of the proposal.

INFORMATION ABOUT THE ARTICLE. Date of receipt June 22, 2017; date of acceptance for printing December 19, 2017; Date posted online December 29, 2017

Baikal State University, Irkutsk, Russian Federation

SUPPLY ON THE LABOR MARKET: METHODOLOGY, NATURE OF FORMATIONS

ABSTRACT. Issues of the optimal correlation of supply and demand take on particular importance in the current context of the labor market development. Traditionally, in the theory and practice of studying the processes of labor supply formation, factors related to the compensation rate have been revealed. Further development of the labor market theory involves study and disclosure of the nature and content of the supply. The article reveals the probabilistic nature of the supply formation on the labor market. This is due to the fact that the methodological definition of the supply is a motivation and desire to get a job or work. The article identifies the factors forming the supply of individual labor, which have a motivational and corrective nature. While investigating the influence of external (objective) and internal (subjective) factors, the author determines the conditions and prerequisites for the supply formation and identifies the stages of transformation. It is emphasized that in the current context the proposed approaches to the labor market development take on the key issues of supply and demand coordination on the labor market, depending on the nature and formation processes of a need for labor activity.

KEYWORDS. Labor market; labor supply; search workplace; conditions; prerequisites and factors of forming individual supply; stages of proposal formation process; motivational and corrective proposal; levels of supply formation.

ARTICLE INFO. Received June 22, 2017; accepted December 19, 2017; available online

December 29, 2017.

Typically, labor market supply refers to the amount of labor services that can be offered in the labor market at a specified price at a specified time.

Emphasizing the characteristic features of the subjects of the proposal, many economists note that the proposal is an offer by an employee of his and inseparable ability to work, which acts as a commodity in the labor market, to the buyer of this specific product-employer for a certain fee, for a certain time period. period. Thus, it is argued that an employee who has a unique commodity "labor power" offers it to the owner of the means of production. At the same time, it is often not specified that the bearer of the goods can be not only "workers", but also those who are part of the labor force. Undoubtedly, only one statement is true that the process of formation of supply in the labor market occurs at the individual level.

Therefore, the goals, needs, socio-economic interests and quality characteristics of persons entering the labor force, having very different parameters, represent different aspects of the proposal. Depending on the change in the qualitative and quantitative parameters of the subjects of supply, it is possible to judge the trends and conditions of the volatility of the supply capacity. For example, it is noted that the educational characteristics of the labor force can be the basis for reconciling supply and demand in the labor market.

Therefore, the most important methodological problem in the theory of the labor market is to determine the factors that affect the value of the supply capacity in the local, regional and national labor markets. Traditionally, classical economic theory determines that the supply of labor depends, first of all, on the level of its payment. In a modern labor economy, as a rule, the relationship between the supply of labor and its price - wages - is expressed by the law of the supply of labor. It is absolutely true that in the labor market of perfect competition, the value of the supply of labor is directly dependent on its price.

This is due to the fact that the supply of labor is predetermined by the needs of people of working age in the usual reproduction of their own; just like demand, it depends on the amount of wages.

Theoretically, it is assumed that for a certain type of labor at a given wage, the supply is added up as the sum of the supply volumes of all workers. Moreover, the relationship between the level of wages and the amount of labor supply is presented in the form of changes in various options for socio-economic parameters.

Meanwhile, the supply on the labor market is not always associated with the impact of the price of labor, the size of wages on the change in its scale. Indeed, this is the most important, but not always the main argument for the formation of the prerequisites for the transformation of the supply of labor. Sometimes, they emphasize the dependence of the supply on rates and changes in payroll taxes.

In some cases, the volatility of supply volumes is associated with the physical and intellectual abilities of productive workers, with the availability of various sources of income generation, including those other than wages. This statement is due to the fact that among the various options for the material support of an individual there may be pensions, benefits,

subsidies, interest on invested capital, dividends and any other income, for which you do not need to work directly. Therefore, we can assume that the proposal is based on a personal choice between work and leisure, commensurate with the opportunity cost of the labor offered by the employer. Ultimately, the study of the formation of a proposal is based on the methodological principles of determining the relationship and the choice between the time of leisure and work, based on the commensuration of the possible receipt of income from work.

Traditionally, the income effect is based on the fact that with an increase in total income at a stable wage rate (which determines pay per unit of time), the desired working time decreases. Accordingly, if, for example, the agent's “goal” is to keep the total income constant, then an increase in the pay rate under the income effect will reduce the desired working hours, and vice versa - to keep income constant, the desired working hours will increase with a decrease in the pay rate.

In turn, the substitution effect is that an increase in the wage rate leads to an increase in the desired duration of working hours, that is, the opportunity cost of one hour of leisure increases and the agent prefers to work more hours. In terms of economic theory, this means that the decision to enter the labor market will depend on how the proposed and reserve wage levels for a given individual are related.

Thus, if the income effect dominates, then the agent reacts to an increase in the wage rate by reducing the supply of labor. On the other hand, if the substitution effect prevails, the supply of labor increases. In modern labor economics theory, the resulting curve is called the "reverse bend curve." It is often argued that, knowing the identified relationships between income and free time, it is possible to model the strategy of individual behavior in the labor market. The process of forming an individual proposal is presented in sufficient detail in the book "Individual strategies of labor supply: theory and practice", published in the early 2000s. The authors have identified the principles that form the individual strategies for the supply of labor.

It is emphasized that at a given wage rate, when choosing the desired working time, each agent is guided by certain individual principles that reflect his preferences in the labor market. By establishing and taking into account a set of specific principles, it is possible to conditionally fix the strategies of individual behavior in the labor market. For example, for only four options for describing individual preferences, sixteen of their pairwise combinations are possible. As emphasized, such a simplifying assumption excludes from the consideration of the problem of the agent making decisions about hiring, firing, changing and looking for work, etc.

Indeed, there are a lot of options for individual strategies based on specific principles of choice. In fact, when shaping the supply on the labor market, there are many more options for choosing preferences. Obviously, this is due to the fact that when choosing preferences in the labor market at the individual level in favor of employment, a sufficiently large number of conditions and prerequisites influence. Undoubtedly, it is worth considering both objective and subjective conditions affecting the decision-making on the supply of labor in the labor market. In addition, for-

The adjustment of supply in the labor market must be commensurate with the prevailing demand for labor.

This is due to the fact that in the real economy, the labor supply is formed and changed under the influence of not only a whole range of objective, but also subjective factors. Ultimately, it is necessary to highlight the methodological postulates that theoretically reveal the essence of the formation of an individual supply in the labor market.

Firstly, first of all, the supply is formed at the individual level or in the sphere of an individual household. This is due to the fact that the decision of an individual (agent) to enter the labor market or change jobs is made at this very level.

Secondly, the process of forming a proposal has an alternative, variable nature of the choice between different conditions of human life (work / leisure). Moreover, the process of forming a labor supply is of a purely personal nature, therefore, it has a personal-behavioral regression.

Thirdly, the formation of the proposal is carried out in conditions of a high level of uncertainty, various kinds of constraints and presupposes a significant degree of probability of the onset of a socio-behavioral event - “entering the labor market”. Decisions on entering the labor market are made under the influence of a significant number of motives, socio-economic interests of the principles that form many options for the economic behavior of an individual.

Therefore, it is important to determine the motivational-behavioral strategy of the individual's behavior in the labor market. Moreover, it is essential to identify how rational the supply on the labor market is, since the decision to enter the labor market is not always rational and depends on many objective and subjective conditions and factors.

Knowing the parameters and evaluation criteria, it is possible to identify the trajectory of the proposal in a particular period of time. On the one hand, given the probabilistic nature of the proposal formation process, it is difficult to determine the dependence on a whole set of conditions, assumptions and prerequisites for this process. This is due to the fact that the process of forming a proposal is highly probabilistic in nature, which means a high degree of uncertainty about an individual's entry into a specific labor market. On the other hand, there is an objective need to take into account the conditions and prerequisites that actually form the supply in the labor market. Ultimately, the supply on the labor market is a socio-psychological definition and its change depends on the totality of objective and subjective socio-economic, organizational and market conditions.

It is fundamentally important that methodically the formation of a proposal is based on the existing prerequisites, which are understood as a precondition, the starting point of an action.

In turn, conditions are circumstances on which something depends. This means that it is necessary to identify a set of prevailing objective and subjective circumstances on which the decision to enter the labor market to find a job depends.

To determine the set of factors and conditions that affect the emergence of supply in the labor market, one should focus on the characteristic features of the persons who form it.

As a rule, the unit of supply is a specific person who offers his labor (his labor force) in the labor market as a commodity. This person can be imagined as an agent or applicant who forms the offer must be aware of and have the need to offer his workforce on the market. Some scientists introduce the concept of "potential employee". Using the named methodological approaches, it is emphasized “in this way, a potential employee can accept (refute) an offer to fill a corresponding vacancy, depending on whether it corresponds (or not) to his ideas about the conditions and level of remuneration. That is, for a specific individual (agent or potential employee) in the labor market, prerequisites must be created that form preferences when justifying the decision to sell their labor.

In the process of forming the supply on the labor market, individual preferences change under the influence of the parameters of the external environment, taking into account the internal conditions and prerequisites for the life of the individual. In addition, the conditions and prerequisites are different in terms of levels, segments and areas in which the proposal is formed. Conditions and prerequisites imply a change in supply under the influence of a number of factors that are differentiated at different levels.

The level aspect of supply formation is associated not only with a different typology of conditions and prerequisites, but also with a high level of probability of achieving various goals of an individual's economic behavior in the labor market.

Schematically, the level of occurrence and readiness for the appearance of a proposal can be presented in Fig. 1. Ultimately, the formation of a proposal can be represented as a set of integrated transitions (stages) from the basic, preliminary to the initial level of decision-making about the need to get a job.

In addition, the process of forming a proposal consists of two stages. At the first stage, it is supposed to realize the need to enter the labor market or get a new job. On the second, the choice of preferences is carried out, under the influence of external and internal conditions. It is important to take into account the procedural aspects suggesting that the appearance of prerequisites is the basis for the formation of conditions of motivation, which are adjusted as the external and internal conditions in which the subject of supply formation in the labor market is exposed.

Rice. 1 Stages of the emergence of different levels of supply

Ultimately, the initial level of readiness to enter the labor market forms the potential for mobility. This is due to the fact that at the heart of the formation

supply lies the mobility of the labor force. Indeed, labor mobility is associated with both a change in the place of work and a change in its essential characteristics. As scientists emphasize, the process of labor force mobility, on the one hand, is due to the individual's ability and readiness to transform its essential characteristics, and on the other hand, to the needs of individual enterprises and the economy as a whole for work of a certain content and place of application.

Thus, it can be argued that the formation of the proposal is based on the process of labor mobility. The key source is the identification of points and trajectories showing when and in what direction a person's readiness to change jobs or the need to enter the labor market is being formed.

It is often emphasized that the worker has some mobility-related options. Choosing from a variety of options is based on various reasons. By deciding to leave or stay in the workplace, to enter or not to enter the external labor market, the employee (or potential employee) maximizes the expected utility from the job. This utility is determined by the value of wages, but is not exhausted by it and may include various non-monetary characteristics (job content, professional prospects, optimal relationships, proximity to home, etc.).

This means that a preliminary offer can be formed both in the field of employment, when the agent works, but is not satisfied with the terms of payment, organization of work, relationships in the team, etc. In this case, the reasons for changing jobs will in fact be determined by the prerequisites that form the potential turnover of personnel. Moreover, the conditions at the new place of work should be no worse, but much better than the existing ones.

Whereas a person who is actually looking for a job is often guided by the conditions of work, which may be different, and the decision is made according to the priority of preferences.

Similarly, an offer is formed for first-time job seekers. In this case, preferences can have trajectories of not only corrective, but also matching order.

Therefore, it can be argued that the proposal at the individual level has a motivational and corrective nature. It is possible to formulate a matrix of prerequisites and conditions for the formation of an individual supply in the labor market (table). At the stage of formation of the basic level, the influence of the external environment is of paramount importance, in which the awareness of the need to enter the market is formed. This can be due to objective or subjective conditions. The prerequisites and conditions for the appearance of the proposal are associated with a change in the external environment.

These may include significant changes in the economic sphere, cardinal changes in the labor market. Experience shows that during the crisis, not only those who have been released from the real sector of the economy enter the labor market, but also the number of people entering the labor market for the first time, as well as those who have had a long period of absence from work, are increasing. Therefore, the reaction to changes in environmental factors makes it possible to establish the objective prerequisites for the formation of the supply of labor in a certain period of time. As a rule, knowledge and consideration of environmental factors concretizes the preconditions for the emergence of a job offer.

This means that the possibility of changing jobs or directly entering the labor market depends on the state of the socio-economic environment.

If in a stable economic situation the possibilities of changing jobs are usually determined by the desire for self-realization and ensuring career prospects, then in a crisis situation it is an opportunity to avoid release and unemployment in general, to ensure minimum income for the existence of a person and his family members. It is the environmental factors that form the basic prerequisites for an individual's entry into the labor market.

Therefore, it can be argued that the formation of the proposal is based on the basic level of individual characteristics of the persons completing the proposal, taking into account the prerequisites of the external environment (the socio-economic situation and the conjuncture on the labor market).

Matrix of prerequisites and conditions for the formation of supply in the labor market

Prerequisites Basic Preliminary Initial

Levels of proposal formation

Objective External Opportunity to enter the labor market Changes in the economic situation. Dynamics of consumer prices Willingness to find a job

Increased competition in the labor market Situation in the labor market (Changes in the labor market) Possibilities of using the market mechanism to get a job

The need for changes in professional and qualification characteristics Possibilities for changing the professional qualification level Willingness to perform a specific job

Subjective Internal Individual need for work Willingness to assess the benefits of work over leisure Formation of the need and urgency of getting a job

Motivational-corrective labor model Formation of motives and priorities in work Selection of priority parameters of the forthcoming work

Social responsibility Awareness of the need and urgency of entering the labor market Analysis and correction of possible directions for finding a suitable job

Life principles of values and aspirations Correction of prospects for performing a specific job Assessment of opportunities and necessary competencies for performing a specific job

The final decision can be made taking into account the personal characteristics of the labor market agent. Among the personal prerequisites of the basic level, the following components can be distinguished, which enhance or, conversely, reduce the opportunities for entering the labor market:

Social affiliation;

The level and quality of life of the employee;

Professional qualification level;

The degree of mobility in a specific vocational qualification group.

It is these criteria that largely predetermine the development and direction of the trajectory of the individual's behavior in the labor market regarding not only the change of job, but also the claims to occupy jobs. The main target at this stage is the awareness of entering the labor market or making a decision to change jobs.

Completely different prerequisites take place in the formation of the preliminary level of the proposal. At this stage, particular importance is attached to the conditions and the expressed power of motivation. This is due to the fact that if at the basic level a stable awareness of the need to get a job was formed, then at the preliminary level, the strength of the motives for seeking and striving to get a job is important.

At the same time, motivation establishes the requirements for arguing the need to make a decision about the possibilities and degree of need for job search and employment. Among the reasons for the emergence of the need for labor activity, the following can be recorded:

1) the purpose of getting a job (this can be income, improving working conditions and the amount of its payment, realizing professional, labor, intellectual potential, etc.);

2) meeting the socio-economic interests and needs of the individual or his family members, the prerequisites for the implementation of social and personal development plans in the event of a job;

3) the degree of urgency and the level of necessity of the need for labor activity.

Meanwhile, the desire and arguments for getting a job may not always be realized, since the labor market presupposes a high degree of variability of involvement in labor activity.

The preconditions for the formation of a proposal must be ensured by the need to get a job and the possibilities of real awareness of entering the labor market. Therefore, among the external prerequisites of the proposal, it is relevant to fix the organizational and market conditions that are associated with the choice and decision-making on finding a job, depending on the degree of development, the availability of elements of the labor market infrastructure. They can be caused by the following interdependent conditions.

Firstly, the possibility of using and the availability of the use of communications of the labor market infrastructure for job search and employment. Experience shows that an extensive network of intermediaries in the labor market contributes not only to an increase in the number of people who turn to the services of intermediaries, but also to the speed of filling vacancies.

Secondly, the level of reliability and efficiency of the information on vacancies used.

Third, the popularity, accessibility and ability to use social networks to find a job. The use of social media now allows more than 35% of candidates to find jobs in the labor market to be hired.

The stability of the preliminary level of supply presupposes the formation and fixation of the initial level of characteristics of the individual supply in the labor market. This is due to the fact that in the process of generating an offer, one should take into account the conditions of internal support, which imply not only the choice of options, but also the adjustment of the available and offered options. At this stage, it is essential to assess the alternative level of preferences for the forthcoming work. At the heart of the choice options, parameters can be set according to the priorities of the following socio-economic criteria:

Working conditions (status, prestige, social security);

The level of wages and working conditions in alternative workplaces;

Costs associated with changing jobs;

Time factor.

The priority of preferences, taking into account the basic level of personal characteristics, presupposes the establishment of the initial conditions of the proposal.

The initial premises of the proposal will be subject to adjustment under the influence of the reasons and motives for seeking and obtaining a specific job.

Therefore, at this stage, corrective factors may appear that affect the process of the appearance of a proposal. They show the ways and elements of a high degree of variability in getting a job. These groups of restrictions include:

1. Assessment of the degree of readiness to perform the work. How much the individual is ready (physically, professionally, qualifying) to perform potential work.

2. Self-assessment of the ability to do the job. What is the list of requirements for the performance of a specific job, workplace.

3. The level of claims to work, conditions, modes of work and rest. How prioritized are the priorities for the possible work. What parameters can be adjusted in the course of a job search.

4. Loyalty to the employer. What criteria can be offered by employing firms. What employment options does the employer offer?

This group of factors shows how and on the basis of what a person seeking to get a job can correct their actions regarding hiring from an employer.

Matching conditions enhance or hinder the process of getting a job and suggest that the decision to look for a job must be agreed on the following parameters:

1) the size and form of remuneration;

2) favorable working conditions;

3) the proposed modes of work and rest;

4) real opportunities for development, advanced training.

In this case, at the final stage, it is possible to determine which parameters of a particular workplace are most preferable for the candidate to take the workplace. Taking into account all of the above factors can determine the potential level of individual supply in the labor market (Fig. 2).

Prerequisites

Initial Motivation Correction Conditions

Potential Offer

External environment

Organizational-market-night conditions

Social status Level and quality of life Professional qualification level

Wage level Working and living conditions Working modes Relationships

Objectives of obtaining

work Meeting interests Urgency

Readiness

work Self-assessment of readiness claims Loyalty to the employer

Size and payment

Working conditions Working hours

and recreation Opportunities for growth

Rice. 2. The process of forming an individual proposal

All factors affect the formation of the proposal with varying degrees of strength and intensity. Motivational and corrective (motives for finding a job, socio-economic interests, attitudes and needs for jobs or work.)

If at the basic and preliminary levels, the formation of the proposal is more influenced by the change in environmental factors, adjusted for the personal characteristics of the carriers of the labor force, then the initial level is influenced by the degree of dissatisfaction (indignation) of the existing social and labor sphere.

It is at this stage that motivation for the goals of getting a job, meeting interests, and the urgency of getting a job is formed. In the future, there is a correction and coordination of the socio-economic interests of the persons who form the supply on the labor market.

Thus, the proposed methodology can be used to form a bank of assessment forms to identify the volume of supply capacity at the individual level. In addition, this methodological approach contributes to the identification of typology and definition of the types of supply in the labor market. The use of the proposed methodological approaches to the essence of labor supply allows us to coordinate the parameters of supply and demand at the stage of functioning of the intrafirm labor market.

Ultimately, the proposed methodological approaches significantly change the idea of the supply of labor, the nature and spheres of its formation, which will make it possible to carry out an objective assessment of the situation on the labor market.

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Bylkov Vladimir Georgievich - Doctor of Economics, Professor, Department of Labor Economics and Personnel Management, Baikal State University, 664003, Irkutsk, st. Lenin 11, e-mail: [email protected]

Vladimir G. Bylkov - Doctor habil. in Economics, Professor, Chair of Labor Economy and Personnel Management, Baikal State University, 664003, Irkutsk, 11 Lenin St .; e-mail: [email protected]

For citation

Bylkov V.G. Proposed in the labor market: methodology, nature of formation / V.G.Bylkov // Baikal Research Journal. - 2017. - T. 8, No. 4. - DOI: 10.17150 / 2411-6262.2017.8 (4) .1.

Labor supply is determined by the size of the population, the share of the able-bodied population in it, the average number of hours worked by the worker per year, the quality of labor and the qualifications of workers. Sentence, the subjects of which are households, is in direct proportion to the size of wages. In the event of an increase in wages, sellers of labor services (in other words, employees) will increase the supply of labor, and in the event of a decrease in wages, the supply of labor will decrease. This relationship is illustrated by the labor supply curve (drawing). This graph illustrates the relationship between the value of wages ( W) and the amount of labor supply ( L). Each point on the labor supply curve ( S L) shows what will be the value of the supply of labor at a certain level of wages. Factors determining the labor supply: 1) Amount of real wages... The relationship between real wages and the volume of labor supply is direct (the higher the wages, the greater the supply of labor). 2) Employee strategy... The employee invests time and money in improving their own production capabilities through education. 3) Time... A person faces an alternative to the distribution of the time of day: if he rests more, then there will be less time for work. It is influenced by two effects that are also inherent in markets for goods and services - the substitution effect and the income effect. Substitution effect means the crowding out of free time by the time of labor. Income effect manifests itself in a fall in the supply of labor with an increase in wages. Those. when the employee reaches a certain level of income and material well-being, he devotes more and more time to rest and other pastime. At the same time, they take into account the lost earnings, which could have been if they had given up leisure ( DRAWING). The graph illustrates a supply curve that is slightly different in configuration. It's all about substitution and income effects. Initially, the supply curve, as expected, has a positive slope and moves away from the ordinate axis. Those. with an increase in wages, the supply also increases. Moreover, with the increased wages, each hour of the worked time is valued by the employee more, and the hour of free time is perceived by him as a lost profit. Therefore, free time is replaced by working time. This displacement effect on the graph appears on the curve S L to the point M... Wages, reaching their possible maximum at the point M, leads to a reduction in the supply of labor. This is due to the income effect. Those. with an increase in wages and reaching a certain maximum, the employee has a high level of well-being. He begins to devote more time to his leisure time, because the income is now quite high and it is not necessary to devote all the time to the work process.

Let us now turn to the study of how supply is formed in this market. By it we mean the number of people who, under the influence of a number of factors, are ready to take on a particular job (after all, in reality, the labor market consists of many labor markets for individual professions). Economists' research and life experience show that the most important of these factors are those that are symbolized in Fig. 12.2.

Labor is a necessary condition for the existence of mankind. It is impossible to do without it. But understanding this still does not turn work into a physiological need for people, although sometimes work can also bring considerable joy (this is especially characteristic of people in creative professions) or gives social prestige highly valued by many (this factor is well traced, for example, in the sphere of public and political activity).

Yet the overwhelming majority of people are engaged in work only because it brings them benefits and, most importantly, allows them to get a means of subsistence. From this it is easy to conclude that the main incentive to work is the pay that can be received for it. It is precisely the inevitability of spending one's time and energy in order to receive wages

Rice. 12.2.

(without which their needs cannot be satisfied) encourages a person to give up idleness and get hired. And the higher this payment, the more willingly a person takes up work.

But, knowing only this, we still do not understand the whole logic of people's behavior in the labor market. To do this, we need to understand what can weaken the willingness of people to work.

Remember: in the world of economics, every choice has a price. What price of choice do we pay when we go to work? This price is measured by the free time that we could use to do what we like, but which we now have to give to work.

Another factor that weakens people's interest in work is the burden of the very responsibilities that must be performed for pay. The more tiresome this or that type of work, the more energy it takes from a person, the more people will demand for it.

Finally, the labor supply is influenced by the complexity of the responsibilities that must be performed successfully in order for your labor efforts to be paid.

Many types of work require special abilities and a lot of learning. But not everyone is endowed with such abilities, and not everyone agrees on a long-term vocational training, preferring activities where this period is minimal.

When deciding for themselves: to work or to be idle, and if to work, then what profession to choose, people compare the factors that prevent them from working in general or from engaging in a specific type of professional activity, with the benefit they can get from work.

Knowing this, we can formulate the law of supply for the labor market: the higher the amount that employers are willing to pay for performing a certain type of work, the more people are willing to do this work.

Naturally, this law also manifests itself in this way, all other things being equal. For example, the earnings of famous opera singers are extremely high, but they have nothing to fear that tomorrow there will be queues at the doors of theaters wishing to sing solo parts. Very few people are endowed with the appropriate vocal abilities and skill, and an increase in the wage rate cannot change this.

The patterns of supply formation in the labor market are quite specific, and this is well shown in Fig. 12.3. The figure shows that up to a certain level (we designated it as the critical level of wages - З к), the labor supply (in physical terms, measured by the number of man-hours that people are willing to work for this wage) increases. But above this level of wages, the supply of labor suddenly begins to decline. What is the reason for such "strange" behavior of people? Are they not attracted by even higher wages?

To find the answer to these questions, we must remember the cost of choosing in favor of labor, which we found above. This price is determined by the pleasures that a person could receive in his free time and from which he gave up in favor of a well-paid job. And when a person begins to receive more and more money for his work, then a question suddenly arises before him: "Maybe it is worth stopping in the race for money and using the considerable income already received in order to have more rest and have fun?"

Rice. 12.3.

If a person answers this question to himself in the affirmative, then the offer of higher wages can no longer make him work harder (it is not for nothing that large businessmen, including Russian ones, complain: “There is time to make money, but for that, there is not enough to spend! ”). Then the labor supply curve bends to the left and the value of this supply begins to decline, despite the increase in wages.

Such a situation arises when a person reaches that absolute level of income, which he, remembering the worldly wisdom: “You cannot earn all the money,” assesses for himself as “sufficient”.

The burden of labor- a measure of the physical and nervous complexity and fatigue of performing professional duties.

And its structure consists of a specific commodity - labor. Therefore, the buyer acquires not a person, but his ability to work. Let's consider in more detail the main provisions.

The labor market is formed under the influence of a number of prerequisites, which can be divided into large groups.

Economic forces

Supply and demand in the labor market are determined by the sale and purchase, which can affect this process and, of course, the cost of their services.

Non-economic factors

These are social, national, demographic and legal preconditions that affect supply and demand in the labor market. Their significance and character are determined by the peculiarities of the country's historical and economic development. The regularity of its formation is that it is heterogeneous in its composition, differing in specific characteristics and the presence of a large number of segments.

Let's highlight non-economic factors in more detail.

First of all, the total number affects the demand and supply in the labor market. The dynamics of the population, the present and the future, are judged, as a rule, in terms of mortality, fertility, life expectancy, and so on. Currently, the demographic situation is quite difficult. Thus, the mortality rate significantly exceeds the birth rate of the population, which will have a negative impact in twenty years, creating a significant labor shortage in the future.

The second significant factor on which the supply for the number depends. We are talking about the part that has the necessary mental and physical abilities.

The third significant factor is the amount of time worked. The employee himself will be able to determine how much he wants to work and what place he will choose for himself.

The fourth factor is the qualitative characteristics of workers. We are talking about the level of education, qualifications of specialists, productivity and so on. Russia takes one of the leading places in this parameter.

The fifth parameter is the availability of a working-age population. It implies the movement of citizens from one territory to another with a change of place of residence and work. In Russia, immigration processes have led to an increase in the number of offers of labor in the labor market and an increase in unemployment. Moreover, visitors are ready to fulfill their duties at a lower cost than its citizens. At the same time, emigration from the country has clear signs of a "brain drain".

Consequently, the main subjects of demand in this market are the state and business. In the latter case, we are talking about large companies, medium and small businesses.

There is an optimal pattern: the demand for labor services is strictly inversely related to the size of wages. With the growth of the latter and other things being equal, the number of offers decreases. Otherwise, the demand for labor increases.

Formation of supply in the labor market. Factors shaping supply in the labor market

annotation scientific article on economics and business, the author of the scientific work - Vladimir Georgievich Bylkov

Related Topics scientific papers on economics and business, the author of the scientific work - Vladimir Georgievich Bylkov

Supply on the Labor Market: Methodology, Nature of Formation

The text of the scientific work on the topic "Supply on the labor market: methodology, nature of formation"

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Formation of supply in the labor market. Factors shaping supply in the labor market

annotation scientific article on economics and business, the author of the scientific work - Vladimir Georgievich Bylkov

Related Topics scientific papers on economics and business, the author of the scientific work - Vladimir Georgievich Bylkov

Supply on the Labor Market: Methodology, Nature of Formation

The text of the scientific work on the topic "Supply on the labor market: methodology, nature of formation"

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