Employee autonomy as a global trend and resource in the Industry 5.0 paradigm

Type of the article: Research ArticleThe relevance of the study stems from the transformation of modern work models from the technologically oriented Industry 4.0 paradigm to the human-centric Industry 5.0, where employee autonomy is emerging and becoming established as a global trend. The paper aims to conceptualize employee autonomy as an economic resource by optimizing work–life balance and assessing its impact on productivity and population well-being. For the analysis, panel data were collected for 123 countries over the period 2005–2023. The methodological basis of the study is the Levin–Lin–Chu unit root test, the Breusch–Pagan Lagrangian multiplier test, the Hausman specification test, and GLS regression estimation. The study found that, on average, in the group of accessible countries, each additional 100 hours worked per year reduces labor productivity by USD 2 per hour. An increase of one hour in the working year reduces GDP per capita by USD 28.48 per person.Furthermore, a one percent increase in the length of the working year is associated with a 2.71 percent drop in GDP per capita per hour. Thus, productivity in the Industry 5.0 paradigm at the global level is predominantly qualitative and is shaped by focus, intrinsic motivation, and decentralized decision-making, rather than by increasing working hours. It is concluded that worker autonomy is an economically significant factor in enhancing productivity, innovation potential, and contributing to the geopolitical and geoeconomic sustainability of societies in the era of globalization.Acknowledgments The paper is prepared within the scientific research projects “Digital transformations to ensure civil protection and post-war economic recovery in the face of environmental and social challenges” (No. 0124U000549) and “Fundamental grounds for Ukraine’s transition to a digital economy based on the implementation of Industries 3.0; 4.0; 5.0” (No. 0124U000576).