Efficient assessment for using qualified personnel in the economy

Abstract

The work analyzed the country's gross domestic product (GDP) dependence on the level of education of the employed population in the economy and the development of the institutional environment. The study was conducted by a comparative analysis of selected countries of the OECD, the Russian Federation and Brazil on the ratio of Gross Domestic Product per person of the employable population to the proportion of population in the cohort under consideration with higher and secondary vocational education. These indicators of the efficiency of the use of skilled personnel in the economy correlate to the level of institutional environment development. The study shows that an increase in the proportion of the educated population in working age alone does not lead to an adequate or expected increase in GDP. The effect is highly dependent on the level of institutional environment development that imposes on this process the natural limitations expressed in the limited needs of the society in qualified personnel. With the example of countries divided into groups according to efficiency indicator, it is shown that in each group the efficiency of the use of skilled personnel varies. The article gives the examples of countries where there is an imbalance in the number of skilled professionals. This imbalance occurs between the needs of the economy, the actual number and professionals being prepared. The most summarized outcome of the study is the conclusion that GDP growth by raising the educational level of the employed population, is not being addressed by increasing the number of skilled personnel in the economy. The increase in their number is a natural response to the needs of society. These needs, in turn, are largely shaped by the impact of the institutional environment.