THE ONTOLOGY OF WAGES: HUMAN CAPITAL, DIGITALISATION, AND INSTITUTIONAL MEDI ATION IN A TRANSITIONAL ECONOMY

This article develops a conceptual and philosophical reassessment of wage determination in transitional labour
markets. Rather than concentrating solely on empirical estimation or econometric modelling, it examines the ontological
and epistemological foundations underlying dominant theories of wage formation—particularly human capital theory,
skill-biased technological change, and institutional approaches to labour markets. The study seeks to clarify what wages
represent as economic phenomena and how they should be understood within structurally transforming economies.
The analysis revisits the classical human capital framework, including the Mincer earnings function, alongside contemporary
perspectives that emphasise digitalisation, artificial intelligence, labour market segmentation, and institutional mediation.
However, instead of treating these frameworks merely as technical tools for regression analysis, the article interrogates
their implicit assumptions about productivity, causality, equilibrium adjustment, and the role of institutions. It evaluates
how concepts such as nonlinearity, structural heterogeneity, digital divides, and institutional rigidities challenge the view
of wages as purely competitive market outcomes determined exclusively by individual productivity.
Special emphasis is placed on transitional and structurally volatile economies, where wage formation often reflects the
coexistence of market mechanisms, institutional legacies, regulatory constraints, and uneven technological diffusion. In
such contexts, wages emerge not simply as the price of labour in equilibrium but as institutionally embedded outcomes
shaped by bargaining structures, sectoral composition, digital access, ownership patterns, and exposure to economic
shocks. The article argues that wage determination must be conceptualised as a multi-layered process mediated by
institutional design, structural transformation, and evolving technological regimes.
Methodologically, the study adopts a structured analytical and philosophical review approach. It contrasts theoretical
propositions with micro-level empirical evidence from transitional economies while clarifying the ontological status of
wages and the epistemological strategies used to study them. Within this framework, wages are conceptualised as
observable monetary outcomes that reflect deeper structural and institutional mechanisms rather than as direct proxies
for marginal productivity alone.
The contribution of the article lies in reframing wage determination within a coherent philosophical perspective that
integrates human capital theory, digital transformation, and institutional economics. By synthesising theoretical debates
and methodological considerations, the study establishes a rigorous conceptual foundation for future micro-level empirical
modelling and policy-oriented research aimed at promoting equitable and productivity-enhancing wage structures in
economies undergoing digital and structural transformation.