Oleksandr Rozhko

The development of human civilization is related to the constant change of economic formations, and the current social and economic situation is determined by such concepts as Society 5.0, Fourth, and Fifth Industrial Revolutions (FIR, FiIR). The paper aims to estimate the change of human role in each economic formation caused by industrial revolutions. A structured review methodology with a focus on biological, labor, and personal entity of human within the industrial revolutions is used. The description of the changes between the biological, labor, and personality entities of human in various socio-economic formations is discussed. The human as a biological entity is not changed in the first four industrial revolutions, while the FiIR tries to change the biological entity through augmenting the physical capacity. The human as a labor entity is not changed in the first three industrial formations, while the FIR tries to replace the majority of physical human jobs and opens the gate for creative economy and decisions-making. The direct labor participation is minimized within FIR since the economic systems move to the transition to the dominant role of cyber-physical systems. The personal human development is triggered within the FiIR, since informational diversity in economic systems is actualized, and conditions for creative jobs within the creative economy are formed. The biological, labor, and personality entities of human are sequentially actualized within the economic formation caused by industrial revolutions.

The transition to future-oriented medium-term budget planning has been an important innovation in the budget process of Ukraine. Since then, the main budget indicators are calculated for the next three years with a forecast that allows for systemic reforms in several areas. This paper aims to identify problems of implementing budget planning for generating an envisaged and balanced budget in conjunction with the priorities of the state. The current status of budget planning and budget performance is analyzed by reviewing budget legislation, budget reporting, information-analytical and presentation data of state authorities and local governments, the experience of developed countries that have achieved some success in medium-term budget planning in terms of income and spending. The paper also reveals the features and advantages of medium-term budget planning based on the result; explores the approaches to transparent, effective, and high-quality use of budget funds with a limited potential of the state to increase tax revenues. The implementation of budget planning is due to the need for further development of the budget process in Ukraine towards increasing predictability, transparency, stabilizing the budget in the medium term, and solving important problems of efficient and high-quality use of budget funds for economic and social recovery.

Type of the article: Research Article

Abstract
Digital transformation has emerged as a key driver of structural change in labor markets worldwide, especially in the aftermath of the COVID-19 shock. In the European Union, the pandemic particularly accelerated the adoption of digital technologies and remote work across economic activities. This study estimates the causal effect of the digitalization potential of economic activity (proxied by a binary classification into highly and less digitalized groups based on telework feasibility and digital intensity) on three labor market indicators: employment, hourly wages, and remote work. Using the COVID-19 shock as a quasi-natural experiment within a difference-in-differences (DiD) framework, the empirical analysis draws on quarterly panel data for a consistent sample of 27 EU Member States (excluding the United Kingdom) over 2018–2024 (N = 36,685). The results indicate that higher sectoral digitalization potential (telework feasibility and digital intensity) does not significantly affect aggregate employment levels, as evidenced by a near-zero DiD coefficient (0.06, p ≈ 0.98). In contrast, it has a statistically significant positive effect on wages, with a DiD coefficient of 0.52 €/hour (p < 0.001), corresponding to an increase of approximately 4.6% in the wage gap between highly and less digitalized activities. The strongest effect is found for remote work: the DiD estimate is 40.74 percentage points (p < 0.001). Remote work rose from 17.6% to 82.1% in highly digitalized sectors, compared with only 1.3% to 6.6% in less digitalized economic activities.

Acknowledgment
This article was prepared within the framework of the research project “Modelling the impact of economic digitalisation on public health in Ukraine in the context of preserving human capital” (State Registration No. 0126U001085).