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Professional networks in the virtual labour market

The publication analyzes the phenomenon of the formation of professional networks in the virtual labor market. The aim of the work is to institutionalize the processes underlying the formation of professional networks. The initial premise is that professional networks with a multi-million audience form a special infrastructure for the virtual labor market, transforming and replacing the infrastructure of the traditional labor market. The study allowed solving the following tasks: to analyze the institutional features of the virtual labor market infrastructure, develop a classification of professional networks, identify trends and directions of their institutional development. The most important result of the study was the substantiation of the dependence of the characteristics of various types of professional networks on the needs underlying the economic behavior of different categories of participants in the labor market. Established the presence of feedback, reflecting the impact of users on the functional and features of various types of professional networks. In addition, institutional inconsistencies and the underlying causes that impede the development of these networks are highlighted. The factors determining the competitiveness of professional networks are determined through the optics of their functional matching to the expectations and needs of different categories of users. A special attention was paid to the influence of the comparative amount of transaction costs on the economic behavior of users. This factor was identified as the root cause of institutional growth and the demand for professional networks. The findings are of continuing importance for employers and users solving employment problems with the help of virtual tools, as well as for professional networks that determine the strategic priorities of institutional development. In addition, the study can be useful in developing policies for institutional regulation of the labor market, addressing career counseling and employment, as well as in the educational process (economic specialties and training areas). 