Factors in the development of the education system in Russia

The paper aims to uncover the substance and content of the factors exerting a profound effect on the functioning of the higher education market in Russia. The research highlights the relevance of studying the needs of the job market for personnel training in conjunction with determining the prospects for the development of the educational services market. The authors perform econometric analysis and construct the demand and supply models. The empirical basis of the study includes the statistical data for the 1993-2018 time period. The results indicate that throughout the entire period there was a steady decrease in the number of school graduates in Russia which exacerbated in 2005 due to the decline in the birth rate in the early 1990s. The analysis found no significant correlation between the number of school graduates and the number of entrants admitted to higher education institutions. On the other hand, the number of students enrolled at universities was decreasing at a much slower rate than the number of school graduates. The study clarifies that the faculty number has a principal influence on the demand for higher education services in Russia, whereas the volume of investment in education affects a supply of graduates in the job market.