Abstract for: A dynamic analysis of the key destabilizing factors on the Ukrainian Labor Market. Wage management

The state of the labor market is one of thesocio-economic parameters that have a significant effect on the development andcompetitiveness level of the national economy. Labor market plays an importantrole in ensuring the success of market reforms, especially in the emergingeconomies such as Ukraine. Moreover, the current state of the Ukrainian labormarket is also affected by complex political and economic situation and may begenerally characterized by a continuous recession and financial imbalances. However, dynamicnature of both labor market itself and socio-economic stability of Ukrainerequires conducting more comprehensive scientific researches, in particular byapplying System Dynamics approach. Hence, developed model wouldbe focused on determining key factors that can provokeshocks and system responses to them. Inparticular, we would like to test the Philips curve concept for Ukraine and evaluate how unemploymentdynamicswill affect inflation. Finally, main goalis to assess the efficiency levelof the statefinancialpolicy, for instance, wage management,determining the consequences of the dramatic change in the minimum wagefor the Ukrainian labor market during recent years.