The Cyber Economy and Digitization: Impacts on the Quality of Life
Purpose: The purpose of the chapter is to study the influence that the digitization of national economies has on human living standards and quality of life.
Methodology: The methodology includes historical and logical analysis, systemic analysis, synthesis, induction, deduction, and graphic methods. The level of development of human capital and quality of life is studied through sociological surveys and expert methods.
Results: The authors determine the current characteristics of human capital and living standards before the full implementation of Industry 4.0; determine the specific features of the digital and cyber economy that influence human living standards; evaluate the current changes in human living standards under the influence of technological transformation; and outline the conditions under which the changes will have the most positive outcomes for the quality of life.
Recommendations: Governments should target regulation on the processes of digitization of the economy to increase the social protection for citizens who are at risk of losing employment. At the preliminary stages in the development of AI it is necessary to train the future work force from the preschool age, developing the key cognitive skills and supporting social entrepreneurship initiatives as an option to reduce pressures on the labor market due to robotization, automatization, and the digitization of economic activities.
KeywordsCyber economy Living standards Quality of life Human capital Digitization
JEL CodeF2 J1 N30 O11 O14 O15 O33 Z13
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