Institutional Change in Higher Education and Precariat

Technological change is increasing the importance of knowledge-based industries and human capital as factors of economic growth, which also depend on the institutional environment. Higher education institution is essential for three reasons. Firstly, it generates new technologies and innovations. Secondly, it ensures the creation of human capital and prepares highly qualified personnel for the national economy. Thirdly, the higher education system forms elites that will govern the country's economic and political life. The phenomenon of “working poverty” appeared as a result of a systemic crisis in the domestic economy, when the number of citizens living below the subsistence level increases despite the “digitalization” and “innovativeness” of the economy. Various forms of precarious work are becoming more common. The problem of employment of students and graduates is a particular one; it impedes the modernization of the Russian economy, which leads to the degradation of the creative potential of young specialists. Individual choices and global trends determine the transformation of students into precarious, which manifests itself in a mismatch between the structure of student preparation and the labor market. Inconsistency of demand in the local labor market leads to the migration of graduates of certain specialties to other regions of the country in search of work, or this leads to a drop in qualifications and inclusion in the precariat. The creation of an effective information system for the interaction of the regional labor market and the educational services market is one way to overcome the imbalances that have arisen.

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