Human capital: the essence and factors of development

Abstract

Methods. During the research, methods of generalization and scientific abstraction were used – when determining the essence of human capital; analysis and synthesis – when identifying the structure and factors of human capital development. Results. The article analyzes the evolution of views on the essence of human capital. On the basis of the category construction principle, which consists in clarifying its three key interrelated elements – «the most significant aspect of the phenomenon», «the mechanism of unfolding the essence of the phenomenon» and «the result of the realization of this phenomenon», the author's definition of this concept is proposed. Human capital is presented as a set of knowledge, skills and abilities acquired both by nature and in the process of learning, the use of which in the process of social production brings person a certain income. It is emphasized that the influence on knowledge, skills and abilities of a person as structural elements of human capital through targeted socio-economic investments allows to develop human capital and contribute to the general socio-economic progress of society. Investments in education, health care, social infrastructure, as well as on-the-job training, secondary, secondary-professional, higher education and research sector are proposed as factors for the development of human capital. Novelty. The definition of the essence of human capital has received further development, the types of social and economic investments have been singled out as factors of the development of human capital. Practical value. The results of the research can be used by state and non-state institutions in the process of researching qualitative and quantitative characteristics of national human capital.