Abstract:

The research of structural change provides useful foundation for study on adaptation to conditions created by the technological progress, as theoretical findings indicate. Now, technological progress stimulates reallocation of emphasis from labour-intensive sectors of economy to high-skill intensive and knowledge-intensive sectors of economy, because of necessity to increase productivity level and value added produced. This, in turn, stimulates pressure on economies and labour markets through the increasing competition level. Education, in such conditions, has to support structural change for strengthening the labour markets and thus to develop the innovative framework in economy. Latvia could be characterized by the starting positions for providing structural change in favour to high-skill intensive and knowledge-intensive sectors of economy, but despite this has clearly defined aims for education and labour markets in the framework of innovative economy. The previous research results, although, indicate on relatively week linkage between education and labour market in Latvia. However, regional development policies actively aim to reach such conditions at labour market, which can stimulate development of innovative economy. The aim of the article is to find answer on the question „does education contribute to desirable structural change at labour market in Latvia?”, using both the experience of labour market and regional policy in context of education. Author supposes that despite dominance of labour intensive sectors in the Latvian economy and relatively low interest in ‘desirable’ educational directions some innovative trends within the issue under consideration can be found in Latvia.

Keywords:

Education, structural change, innovation, labour market, Latvia.