The Impact of Professional Skills in the Use of Information and Communication Technologies on the Income From Employment: Generational Differentiation

Abstract

The article presents the results of a research aimed at identifying the level of proficiency in the use of ICT tools (ICT skill levels) among employed and unemployed and also generational groups (youth, middle and older generation), as well as identifying the quality of employment and income depending on the level of ICT skills of employed and their generational groups. The author’s classification of the ICT skills levels is presented and, on its basis, a quantitative identification of the ICT skills levels among the employed and unemployed is carried out. It was found that among the employed, 40.5% have the ICT skills required for work, including 1.8% are distinguished by the presence of specialized skills corresponding to the third (highest) level, the remaining 59.5% have basic ICT skills. Among the unemployed, compared to the employed, the share of those with only basic ICT skills not related to professional activity (75.1%) is significantly higher, while the share of those with the third (highest) (0.9%) and second (24.0%) the level of ICT skills, on the contrary, is lower relative to the employed. Generational differences in the levels of ICT skills among employed and unemployed were revealed. Among the youth, the proportion of those who possess the highest ICT skills and have realized their labor potential is higher than for the employed as a whole and their other generational groups. Estimates of the distribution of employed and their generational groups according to the level of income from the main employment, determined on the basis of original system of social standards, depending on the level of ICT skills, are obtained. As a result of the research, it was revealed that a higher level of ICT skills increases the chances of realizing the existing labour potential. Meanwhile, as higher the level of ICT skills, the greater chances of “converting” them into higher incomes due to employment. It is shown that implementation of labour potential in the labour market with a higher level of ICT skills determines lower risks of reducing the quality of employment, and also increases the chances for employed people to ensure higher standards of material prosperity in their households.