Society is people, and people are social strata. Basically, the value of each social stratum is determined by the presence of a share of human capital in it.

1. What does human capital mean

Its level in each social stratum depends on the ratio of the concentration in it of people with abilities higher than those of others. Human capital is what determines the quality or intellectual level of a particular type of society.

In itself, the concept of "capital" means literally - "main property". This is the totality of assets that a person has.

If we combine the concept of "capital" with the meaning of the word "person", then we can confidently say that we are talking about the value of personal and professional qualities.

In this case, such assets mean:

• knowledge
• intelligence

These are intangible assets. This is the level of education and education of a person.

The purpose of any capital is to create profit, wealth. Human capital is no exception. It is closely related to the overall productivity of labor at a particular enterprise, in a company, in a particular society, city, region, country.

In English, "human capital" is written as "human capital".

This phrase was first said by Jacob Minser in 1956, and then Theodor Schultz used this definition in 1961. Then, for the first time, the inequality of final incomes was recorded with common initial data on labor and tools.

2. Components of human capital

A person's inner convictions, as well as his hobbies and desire to develop, are usually determined by social factors.

• nationality, mentality
• attitude towards discipline
• well-being, health

The main component of human capital is the experience and knowledge accumulated by a specific point in time.

In fact, human capital is nothing but the qualities of a person.

• personal, individual
• collective
• corporate

The difference between the human capital of one social stratum and another consists in comparing the competitiveness of the level of intellectual abilities accumulated by each of them.

3. Funding in human capital

There are various ways to invest in human capital. The fact that this is profitable is due to the fact that the personal and business qualities of a particular specialist or group of workers contribute to the creation of economic welfare for all parties.

Investing in a person usually means increasing his ability to work. For example, it could be sponsorship:

• in the field of education
• raising the level of professional skills
• in the field of compensation for payment for housing, clothing, food and other household expenses

To set the amount of investment, you should determine the initial level - a set of information that a particular person carries in himself at a given point in time, and compare it with the desired end result.

4. Human capital index

Human capital is assessed using an index. The calculation uses a special methodology. Taken into account:

• costs in the past
• income

Economists have proposed a method for estimating the index using a formula. It includes indicators such as:

• lifetime earnings (X)
• current salary
• the sum of the expected profit at the age of (X + 1)

The dynamics of a person's development from year to year, the change of jobs, positions, additional education, performance results, reasons for promotion are taken into account. This determines a person's ability to generate income.

According to calculations, in Russia, human capital for 2019 is 46% out of 70% possible in comparison with the countries of the Organization for Economic Cooperation and Development (OSED). At the same time, the proportion of people with higher education in Russia is higher than in the OECD countries. The quality of education is at the same level.

5. How to manage human capital

Funding in human potential gives the investor the same profit as from investing in any other project.

There are also risks here:

• a person's desire to move to another job
• his new life circumstances that reduce his ability to work, such as having children if the sponsored person is a woman
• the presence of a part of knowledge that does not give a useful return, for example, of a specific nature

However, it is possible to enter into a special contract under which the sponsored person undertakes to perform specific tasks for a certain period of time without the possibility of terminating it or changing the conditions. Thus, the return on investment is guaranteed. An exception in this case may be the illness of the sponsored person or his death.

Human capital is the highest form of management:

• tools
• resources
• systems

Ultimately, the quality of management is reflected in economic indicators.

We can say that the quality and quantity of information that a person carries in himself directly affects the economic performance not only at an enterprise, in a company, but also in a city, region or country. The information available to people determines the growth of these indicators, which, accordingly, affects the competitiveness in the world market.

The human resource is the main value of the country. For example, in the company of Bill Gates, the share of human capital is about 50%, which allows his brand in its segment to be the leader in the global operating system software market.

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In the process of economic development, there is a replacement of the accumulation of physical capital by the accumulation of human capital. The rate of accumulation of human capital outstrips the rate of accumulation of physical capital. Human capital has a completely different accumulation process than physical capital. Attention to human capital is due to the clear profitability of funds invested in its formation (for example, in education, vocational training).

Human capital is considered a mobile form of capital. In the current conditions, labor migration of highly qualified employees is considered a significant source of human capital accumulation, which ensures material well-being and economic growth in the Russian Federation.

The economic world has a need for hired employees of high quality, with higher education and significant qualifications. Theoretical growth models and microeconomic data suggest that the accumulation of human capital is considered a significant condition that characterizes income per inhabitant, GDP. One of the key conditions of production, characterizing the state welfare of the state, is the size of the collected human capital.

The main form of accumulation of human capital is investment in human capital, health, and education. The accumulation of the main assets of human capital occurs in the process of investment, and both the private sector of the economy and the state act as investors.

The growth of the world economy in the shortest few years will depend on the accumulation of human capital. The accumulation of human capital is becoming one of the main conditions for achieving such development. The accumulation of human capital is considered the source of economic growth.

The policy of saving human capital contains:

human capital and demographic movements: a combination to a single regulation;

formation of human capital;

business and investment in human capital;

state-private partnership in the field of saving human capital;

problems of saving and implementation of human capital in the regions of the Russian Federation.

The subjective factor has a huge impact on the accumulation of human capital. The accumulation of human capital depends on the average level of human capital. The participation of people in the process of accumulating human capital is meaningful, it requires motivation and significant efforts of the student himself.

The direct costs of accumulating human capital may include individual tasks, training materials, and investment in human capital. The overall process of accumulation of human capital is long-term and ranges from 12 to 20 or more years. In the Russian Federation, the accumulation of human capital in any area contains its own characteristic features: in rural areas, small settlements, the accumulation of capital is slower than in large settlements. Economic growth promotes the accumulation of human capital in rural areas.

MINISTRY OF EDUCATION AND SCIENCE KHARKOV NATIONAL UNIVERSITY named after V.N.KARAZIN

Faculty of Economics

Department of Economic Theory

and economic management methods

Course work:

Human Capital: Economic Content and Factors of Accumulation

Executor:

I-year student

group EE-11

Goncharova Ya.A.

Scientific performer:

e. n. Kim M.N.

Kharkiv - 2010

Introduction

Chapter I. The essence of human capital

1.1Modern approach to the study of human capital

1.2Methods for assessing human capital

1.3Assessing human capital based on targeted investment

1.4Assessing human capital by analogy with physical capital

1.5 Measuring human capital: challenges and opportunities

Chapter II. Factors of accumulation of human capital

2.1The role of education and science in the accumulation of human capital

2.2 Development of health and culture as a factor in capital accumulation

2.3 Importance of human capital accumulation

Conclusion

List of used literature

Introduction

Prospects for the world economy in the XXI century.

are determined by the nature of the transition of countries to a new stage in the development of productive forces: from the industrial stage, where large-scale mechanized machine production dominated, to the post-industrial stage, where the service sector, science, education, etc. will prevail.

The production of material goods will certainly retain its importance, but its economic efficiency will be determined primarily by the use of highly qualified personnel, new knowledge, technologies and management methods.

Thus, the method of production and transfer of knowledge comes to the fore, in fact, the person himself - his intellectual potential.

Therefore, an increasing number of researchers consider human capital to be the most valuable resource of a post-industrial society, much more important than natural or accumulated wealth.

Already now, in all countries, human (intellectual) capital predetermines the pace of economic development and scientific and technological progress.

Accordingly, the interest of society in the education system as the basis for the production of this capital is also increasing.

Despite the unconditional demand for the theory of human capital, it is being developed mainly by American and British scientists. Much attention is paid to investing in human capital and the factors of its accumulation, since this directly affects the development and improvement of human capital.

In Ukraine, the development of human capital is necessary, but unfortunately at this stage it is weak, because it does not have a sufficiently developed scientific, technical and information base.

To do this, it is necessary to study as deeply as possible all the nuances and requirements of the effective development of human capital and determine the significance of its accumulation.

1.1 Modern approach to the study of human capital

The theory of human capital studies the process of qualitative improvement of human resources, forming one of the central sections of the modern analysis of the supply of labor. With its nomination, a real revolution in the labor economy is associated. The most important were:

1) highlighting the “capital”, investment aspects in the behavior of agents in the labor market;

2) the transition from current indicators to indicators covering the entire life cycle of workers (such as lifetime earnings);

3) recognition of human time as a key economic resource.

The idea of ​​human capital has long roots in the history of economic thought. One of its first formulations is found in W. Petty's Political Arithmetic. Later it was reflected in the “Wealth of Nations” by A. Smith, "Principles" by A.

Marshall, and the works of many other scientists. However, as an independent section of economic analysis, the theory of human capital took shape only at the turn of the 1950s and 1960s.

The merit of its nomination belongs to the famous American economist, Nobel Prize winner T. Schultz, and the basic theoretical model was developed in the book by G. Becker (also Nobel Prize winner) “Human Capital” (first edition 1964).

This book became the basis for all subsequent research in this area and was recognized as a classic of modern economic science.

T. Schultz made a huge contribution to the formation of the theory of human capital at the initial stage of its development, to its acceptance by the scientific community and popularization. He was one of the first to introduce the concept of human capital as a productive factor. And he did a lot to understand the role of human capital as the main engine and foundation of industrial and post-industrial economies.

Schultz considered the accumulation of people's ability to work, their effective creative activity in society, maintenance of health, etc. to be the main results of investments in a person.

He believed that human capital has the necessary features of a productive nature. Cheka is capable of accumulating and reproducing.

According to Schultz, of the total product produced in society for the accumulation of human capital, not 1/4 is used, as followed from most of the theories of reproduction of the 20th century, but 3/4 of its total value.

G. Becker, perhaps, was the first to transfer the concept of human capital to the micro level. He defined the human capital of an enterprise as a set of skills, knowledge and skills of a person. As an investment in them, Becker took into account mainly the costs of education and training. Becker estimated the economic efficiency of education, first of all, for the worker himself.

He defined additional income from higher education as follows. From the income of those who graduated from college, he subtracted the income of workers with a secondary general education. The costs of education were considered both direct costs and opportunity costs - lost income during training. Return on investment in education D.

Becker estimated as the ratio of income to costs, having received approximately 12-14% of the annual profit.

Becker made a special contribution to the theory of competition, strategy and development of the firm. He introduced the distinction between special and general investment in man. And he emphasized the special significance of special education, special knowledge and skills.

Special training of employees forms the competitive advantages of the company, the characteristic and significant features of its products and behavior in the markets, and ultimately its know-how, image and brand. Firms and corporations themselves are primarily interested in special training, and they finance it.

These works of Becker became the basis for the creation of the modern theory of the firm and competition. General training is indirectly paid for by the workers themselves, when, in an effort to improve their skills, they agree to lower wages during the training period; they also get the income from general investments.

On the contrary, special training is financed for the most part by the firms themselves, which also receive the main income from it.

The concept of dedicated human capital has helped to explain why workers with long tenure in the same job have lower turnover rates and why firms fill vacancies primarily through internal promotions rather than through recruitment from outside the market.

Another area where the contribution of G. Becker in the theory of human capital turned out to be especially significant - this is an analysis of the problems of economic inequality. Using the apparatus he developed for demand and supply curves for investment in human capital, G.

Beckers formulated a universal model for the distribution of personal income.

The uneven placement of demand curves for investment in human capital reflects inequality in the natural abilities of students, while the uneven placement of supply curves reflects inequality in their families' access to financial resources.

The model proposed by G. Becker explains the inequality of income not only from labor (in fact, from human capital), but also from property (from other assets received as a gift or inheritance). The return on investment in a person is on average higher than on investment in physical capital.

However, in the case of human capital, it decreases with an increase in the volume of investments, while in the case of other assets (real estate, securities, etc.) it decreases little or does not change at all.

Therefore, the strategy of rational families is: first invest in the human capital of children, since the return on it is relatively greater, and then, as it decreases as it compares with the rate of return of other assets, switch to investing in them in order to subsequently transfer these assets to children.

From this, Becker concluded that families that leave inheritances make optimal investments in the human capital of children, while families that do not leave inheritances most often underinvest in their education.

The development of the theory of human capital went in line with the neoclassical direction. In recent decades, the principle of optimizing behavior of individuals, which was original for neoclassicists, began to spread to various spheres of non-market human activity.

The concepts and methods of economic analysis began to be applied to the study of such social phenomena and institutions as education, health care, migration, marriage and family, crime, racial discrimination, etc.

The theory of human capital can be seen as one of the manifestations of this general trend, called "economic imperialism".

Human capital is understood as the stock of abilities, knowledge, skills and motivations embodied in a person.

Its formation, like the accumulation of physical or financial capital, requires the diversion of funds from current consumption in order to obtain additional income in the future.

The most important types of human investment include education, training at work, migration, information retrieval, the birth and upbringing of children.

The central place in the theory of human capital belongs to the concept of internal rates of return. They are built by analogy with the rates of return on capital and allow us to evaluate the effectiveness of human investment, primarily in education and training.

Human capital theorists proceed from the notion that when investing in training and education, students and their parents behave rationally, weighing the corresponding benefits and costs.

Like "ordinary" entrepreneurs, they compare the expected marginal rate of return on such investments with the return on alternative investments (interest on bank deposits, dividends on securities, etc.).

Depending on what is more economically feasible, a decision is made either to continue studying or to stop it. Rates of return act, therefore, as a regulator of the distribution of investment between different types and levels of education, as well as between the educational system as a whole and the rest of the economy.

High rates of return indicate underinvestment, low rates indicate overinvestment. There are private and social norms of return. The former measure the effectiveness of investments from the point of view of individual investors, the latter from the point of view of the whole society.

There are two main approaches to calculating rates of return. The first is based on direct measurement of benefits and costs. For example, income from higher education can be represented as the difference in lifetime earnings of those who graduated from college and those who did not go beyond high school.

Costs include, in addition to direct costs, lost earnings, that is, income not received by students during their years of study. (Essentially, they measure the value of student time spent building human capital.) Lost earnings account for up to two-thirds of the total costs of education.

The internal rate of return will be the discount rate at which the given benefits and costs of education are equal.

The second approach is based on estimating the parameters of the so-called “production function of earnings”, which describes the dependence of a person’s earnings (more precisely, their logarithm) on the level of his education, work experience, length of time worked, and other factors.

The development of this class of functions is associated with the name of J. Mintzer, who proved that in the framework of such a model, the coefficient of the transforming variable will be equivalent to the indicator of the internal rate of return. This greatly simplified the assessment of the effectiveness of investments in education.

Estimates of internal rates of return have been criticized on the grounds that the high earnings of educated workers may not be indicative of the usefulness of the knowledge and skills they have acquired, but be a consequence of their natural gifts or coming from more affluent families.

However, empirical analysis shows that both the factor of abilities and the factor of social origin do not play a large independent role.

Human capital: development, basic principles, theory and problems

Human capital (HC) is a set of knowledge and skills that are applied to meet the needs of an individual and society. This term has been used since 1961 thanks to the American economist Theodor Schultz. His followers developed this topic, describing the factors, methods and other features of the development of human capital.

The history of the development of the issue

In the scientific literature, information on the development of human capital began to appear actively in the second half of the 20th century. This term and the foundations of the theory were introduced by economists Theodor Schultz and Gerry Becker, for which they subsequently received the Nobel Prize.

The emergence of the theory of human capital has become a kind of response to private economic theories to the need for a real economy. The role of man and his potential in society was not fully disclosed.

Through a deep analysis of economic processes, human capital was identified as the main factor in the development of society.

For a long period of time, the understanding of human capital was limited to human knowledge and skills, and was also considered an exclusively social category.

Any investment in a person (for example, in education) was considered unproductive. By the end of the 20th century, attitudes towards this category had changed.

According to Fisher, human capital embodies the ability of a person to generate income.

Having studied the experience of advanced countries, Simon Kuznets came to the conclusion that the accumulated human capital is the main condition for the development of the economy.

And the economist Edward Denison focused not only on the quantity, but also on the quality of human resources (namely, on the importance of education).

Over time, the importance of health, emotional state, material well-being of workers and other factors was described.

Modern theory of human capital

Based on many years of research, a certain theory of human capital has developed. It can be briefly described as follows:

• acquires and accumulates knowledge, skills and abilities throughout life, applying them in various fields;
• the growth of material well-being affects the interest in the further development of human capital;
• in order to increase labor productivity and increase economic efficiency, it is advisable to use human knowledge, skills and abilities;
• refusal of current needs in favor of the formation of labor potential leads to an increase in the level of well-being in the future;
• motivation and stimulation are necessary conditions for the acquisition and accumulation of knowledge, skills and abilities.

How is human capital formed?

If we consider the formation of human capital on the example of a single person, we can conclude that on average this process takes 15-25 years. As a rule, it begins at 3-4 years.

At this point, the child already has enough information to start developing talents and acquiring knowledge. Of course, you should not write off the innate potential.

Further self-determination and self-realization depend on how successful education in childhood will be.

The most significant in terms of personal development is the period from 13 to 23 years (approximately). At this time, the most active general, creative and vocational training takes place. The higher the level of accumulated knowledge, the more significant the opportunities in terms of improving one's own well-being and improving the life of society as a whole.

Types of human capital

There are several types of human capital. Namely:

• General - all knowledge and skills, regardless of the sources of acquisition and ways of application.
• Specific - special knowledge and skills that have practical value.
• Positive - Accumulated human capital that provides a positive return on investment.
• Negative (or passive) - human capital that does not give a positive return.

Structure of the Cheka

The development of human capital occurs in several directions. Its structure is shown in the table:

Cheka Development Factors

Researchers identify several groups of human capital development factors. They are described in the table.

Principles of human capital management

Human capital management is based on some fundamental principles. Namely:

• Considering human capital as an asset that requires investment, rather than a liability that requires costs.
• Coincidence of the business model of the enterprise with the strategy of human capital development.
• Application of new methods, approaches and technologies in matters of human capital management.
• A balanced approach to motivating and stimulating labor resources.
• Targeting of investments in the formation of human capital.
• Regularity of quantitative and qualitative assessment of human capital.
• Scientific validity of activities.

Human capital development index

In different countries, the situation in the field of human resource development is not the same. An indicator such as the human capital index helps to conduct a comparative analysis. It is calculated and published annually by the analytical department of the World Economic Forum, together with experts from Harvard University and a reputable consulting company.

To assess how human capital is developing in a particular country (a total of 122 economies are analyzed), marks are given from 0 to 100. The score is given as a result of evaluating several parameters, namely:

• income (expressed in gross domestic product per capita);
• education (calculated based on the level of literacy among the population, the proportion of children and young people studying);
• longevity.

As of 2017, the leaders in the human capital development index were Finland and Norway. In the tail of the rating are Senegal, Mauritania and Yemen. Russia is on the 51st place in this list.

Measures to develop Cheka

The level of human capital development in a country largely depends on the efforts of the government. Here are the most popular measures around the world:

• ensuring the affordability of housing (as a rule, we are talking about favorable conditions for mortgage lending, as well as creating conditions for the development of the real estate market);
• ensuring the availability of education (both primary, secondary and higher);
• improving the welfare of citizens (in particular, by creating a sufficient number of jobs);
• providing a sense of personal security through the development of affordable insurance programs;
• ensuring the longevity of the population through the development of the medical system and ensuring labor safety;
• development of new forms of pension insurance.

Innovative approach to development

Time dictates its conditions, and therefore there is a need for new ways of developing human capital. The innovative approach includes the following measures:

• establishing links between educational institutions and the business environment;
• development of new educational services and appropriate methodological support;
• introduction of modern technologies and software into the educational process;
• interstate exchange of innovative methods;
• development of the consulting base.

Studying the problem of human capital development, it is worth paying attention to investments. We are talking about financial investments in education, health care, science, social issues and so on. Investments in HC have the following key features:

• Efficiency is directly related to life expectancy. The sooner financial injections begin, and the longer the working age of a person lasts, the greater the return will be.
• They multiply and accumulate, despite the tendency to moral and physical wear and tear.
• As soon as a person loses the ability to work (regardless of the reason), the efficiency of investments decreases sharply.
• If investments in human well-being are associated with illegal activities, they cannot be considered investments in human capital.
• The return on investment does not come immediately, it can be noticeable after 10-20 years.

Features of human capital in Russia

Russia is a huge country, which is characterized by some heterogeneity in terms of opportunities for the population. Thus, the development of human capital in the Far East, in Siberia or in the southern regions (and so on) will be somewhat different. Nevertheless, if we sum up the generalized calculations, the country averages will be as follows:

• Life expectancy (based on health assessment and actual longevity) is 70.3 years. It is worth noting that this is not the best indicator and is at the level of countries that are characterized by an average development of human capital.
• The literacy rate of the population (based on the number of years that people spend on education) is 15 years. The expected duration of education for future generations tends to decrease and is 12 years. Despite the negative dynamics, these indicators are quite good, typical for countries with a high level of human capital.
• The standard of living (measured by gross per capita income at purchasing power parity) is $23,286 (1,577,000 rubles). This indicator is typical for countries where the development of human capital is at an average level.

Problems of human capital in the domestic space

Are there problems in the development of human capital in Russia? Of course, there are also many of them. Here are the manifestations of the crisis of the Cheka by domestic researchers:

• the critical situation regarding the funding of science and education, which has a direct negative impact on the quality of research and teaching;
• depreciation of human capital in some areas of the economy, which leads to intellectual unemployment;
• the formation of a surplus of highly qualified personnel in some sectors, which is associated with a reduction in funding;
• a downward trend in the income level of people with higher education, which causes them to look for side jobs or change their profession to a low-skilled one;
• brain drain abroad;
• insufficiency or lack of market-oriented knowledge among the political and economic elite;
• discrepancy between the qualifications of officials and the new economic and social conditions;
• shortage of quality teaching staff;
• socio-psychological tension caused by economic and political instability, as well as a change in the usual behavioral model.

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MINISTRY OF EDUCATION AND SCIENCE KHARKOV NATIONAL UNIVERSITY named after V.N. KARAZINA

Faculty of Economics

Department of Economic Theory

and economic methods of management

Course work:

Human Capital: Economic Content and Factors of Accumulation

Executor:

1st year student

group EE-11

Goncharova Ya.A.

Scientific performer:

e. n. Kim M.N.

Kharkiv - 2010

Introduction

Chapter I. The essence of human capital

1.1 Modern approach to the study of human capital

1.2 Methods for assessing human capital

1.3 Valuation of human capital based on targeted investment

1.4 Valuation of human capital by analogy with physical capital

1.5 Measuring human capital: challenges and opportunities

Chapter II. Factors of accumulation of human capital

2.1 The role of education and science in the accumulation of human capital

2.2 The development of health and culture as a factor in the accumulation of capital

2.3 Importance of human capital accumulation

Conclusion

List of used literature

1.1 Modern approach to the study of human capital

The theory of human capital studies the process of qualitative improvement of human resources, forming one of the central sections of the modern analysis of labor supply. With her nomination, a real revolution in labor economics is associated. The most important were:

1) highlighting “capital”, investment aspects in the behavior of agents in the labor market;

2) the transition from current indicators to indicators covering the entire life cycle of workers (such as lifetime earnings);

3) recognition of human time as a key economic resource.

The idea of ​​human capital has long roots in the history of economic thought. One of its first formulations is found in "Political Arithmetic" by W. Petty. Later, it was reflected in “The Wealth of Nations” by A. Smith, “Principles” by A.

Marshall, and the works of many other scientists. However, as an independent section of economic analysis, the theory of human capital took shape only at the turn of the 1950s and 1960s.

The merit of its nomination belongs to the famous American economist, Nobel Prize winner T. Schultz, and the basic theoretical model was developed in the book of G. Becker (also Nobel Prize winner) “Human Capital” (first edition 1964).

This book became the basis for all subsequent research in this area and was recognized as a classic of modern economics.

T. Schultz made a huge contribution to the formation of the theory of human capital at the initial stage of its development, to its acceptance by the scientific community and popularization. He was one of the first to introduce the concept of human capital as a productive factor. And he did a lot to understand the role of human capital as the main engine and foundation of industrial and post-industrial economies.

Schultz considered the accumulation of people's ability to work, their effective creative activity in society, maintenance of health, etc. to be the main results of investments in a person.

He believed that human capital has the necessary features of a productive nature. Cheka is capable of accumulating and reproducing.

According to Schultz, out of the total product produced in society, not 1/4 of the total product produced in society is used for the accumulation of human capital, as followed from most theories of reproduction of the 20th century, but 3/4 of its total value.

G. Becker, perhaps, was the first to transfer the concept of Cheka to the micro level. He defined the human capital of an enterprise as a set of skills, knowledge and skills of a person. As an investment in them, Becker took into account mainly the costs of education and training. Becker assessed the cost-effectiveness of education, first of all, for the worker himself.

He defined additional income from higher education as follows. From the income of those who graduated from college, he deducted the income of workers with a secondary general education. The costs of education were considered both direct costs and opportunity costs - lost income during training. Return on investment in education D.

Becker estimated as the ratio of income to costs, having received approximately 12-14% of the annual profit.

Becker made a special contribution to the theory of competition, strategy and development of the firm. He introduced a distinction between special and general investment in a person. And he emphasized the special importance of special education, special knowledge and skills.

Special training of employees forms the competitive advantages of the company, the characteristic and significant features of its products and behavior in the markets, and ultimately, its know-how, image and brand. Firms and corporations themselves are primarily interested in special training, and they finance it.

These works of Becker became the basis for the creation of modern theory of the firm and competition. General training is paid indirectly by the workers themselves, when, seeking to improve their skills, they agree to lower wages during the training period; they also receive income from the general investment.

On the contrary, special training is financed for the most part by the firms themselves, which also receive the main income from it.

The notion of dedicated human capital has helped explain why there is lower turnover among long-term workers in the same job and why firms fill vacancies primarily through internal promotions rather than through recruitment from outside the market.

Another area where G. Becker's contribution to the theory of human capital turned out to be especially significant is the analysis of the problems of economic inequality. Using the apparatus of supply and demand curves developed by him for investment in human capital, G.

Becker formulated a universal model for the distribution of personal income.

The unequal arrangement of demand curves for investment in human capital reflects inequality in the natural abilities of students, while the unequal arrangement of supply curves reflects the inequality in their families' access to financial resources.

The model proposed by G. Becker explains the inequality of income not only from labor (in fact, from human capital), but also from property (from other assets received as a gift or inheritance). The return on investment in people is, on average, higher than on investment in physical capital.

However, in the case of human capital, it decreases with an increase in the volume of investments, while in the case of other assets (real estate, securities, etc.) it decreases little or does not change at all.

Therefore, the strategy of rational families is as follows: first invest in the human capital of children, since the return from it is relatively greater, and then, as it decreases as it compares with the rate of return of other assets, switch to investing in them in order to subsequently transfer these assets to children.

From this, Becker concluded that families that leave inheritances make optimal investments in the human capital of children, while families that do not leave inheritances most often underinvest in their education.

The development of the theory of human capital went in line with the neoclassical direction. In recent decades, the principle of the optimizing behavior of individuals, which was initial for neoclassicists, began to spread to various spheres of non-market human activity.

The concepts and methods of economic analysis began to be applied to the study of such social phenomena and institutions as education, health care, migration, marriage and family, crime, racial discrimination, etc.

The theory of human capital can be seen as one of the manifestations of this general trend, called "economic imperialism".

Human capital is understood as the stock of abilities, knowledge, skills and motivations embodied in a person.

Its formation, like the accumulation of physical or financial capital, requires the diversion of funds from current consumption in order to obtain additional income in the future.

The most important types of human investment include education, training at work, migration, information retrieval, the birth and upbringing of children.

2.3 Importance of human capital accumulation

Human capital is recognized as the most valuable resource, more important than natural resources or accumulated wealth. It is human capital, and not material means of production, that is the cornerstone of competitiveness, economic growth and efficiency.

The theory of human capital by scientific methods proves the effectiveness, economic feasibility of investing in human development. That is why, on the scientific basis of the theory of human capital, the concept of human development appeared and received rapid development on a global scale.

The theory of human capital has become a turning point in developed countries in the motivation of human development, in the trends in attitudes towards the sectors of the social sphere that ensure this development - education, healthcare, culture, etc., in particular in terms of their resource provision.

Increasing the return on investment in human capital, in particular, spending on education, has contributed to the recognition of it by the ruling circles of many countries as an important factor in economic development, and by business leaders as a factor in increasing labor productivity and production efficiency.

To a large extent, thanks to the theory of human capital, non-formal education, adult education, and educational and professional programs of enterprises have gained public recognition.

In developed countries, and to a greater extent in countries striving for rapid and successful development, education is cultivated as an economically rational activity of a person, not only at her young age, but throughout her life. Lifelong or continuous education has become the conceptual embodiment of this idea.

This also affected the resource provision of education, and it is important not only to increase budget allocations, but also to diversify funding sources.

A striking confirmation of the birth of the concept of human capital and human development in public practice is the experience of the socio-economic growth of countries that do not have significant natural resources, as well as countries with economies destroyed during the Second World War (Taiwan, Korea, Japan, Germany). Their development strategy was based on the human factor - the most important component of scientific and technological progress and an inexhaustible resource for economic growth. It was this strategy that ensured the high dynamics of economic development and its impressive social results. Another confirmation of the great importance and vitality of the theory of human capital is the fact that in developed countries investments in a person (in its development and social protection) since the 1950s have increasingly exceeded the size of material accumulation.

Production investments, with their undeniably important importance, are increasingly inferior to investments in human development, and the most important changes in the reproductive process of developed countries occur outside the sphere of material production. Human capital is a valuable resource, much more important than natural resources or physical capital.

According to the World Bank, in the structure of the national wealth of the 92 countries studied, human capital accounted for 2/3 in 1994, including about 3/4 in the higher developed countries.

This is not the only confirmation of the thesis that at the end of the twentieth century, the main factor in economic development and competitiveness at all levels is not the accumulation of material goods and services, but the accumulation of knowledge, experience, skills, health, motivation and other productive characteristics of people acquired in the process human development.

At the end of the 20th century, the idea that people and their development is the most important goal of social progress is gaining more and more support both in scientific economic research and in the development of national development programs and international cooperation projects.

Significant influence of the theory of human capital, receive new scientific evidence regarding the post-industrial society, reinforcing views on the decisive role of man in economic dynamics, improving the efficiency of human activity at all levels.

The impact of human capital, primarily raising the level of education of workers, on economic growth is considered not only directly, through an increase in the productivity of the above-mentioned people, but also indirectly, through an increase in efficiency and acceleration of research and development and their mass implementation in all spheres of human life (which also requires an appropriate level of education of the masses of the population.

State regulation of the economy

With regard to capital, the regulatory role is manifested directly and indirectly. It finds its direct expression in the public sector...

State regulation of the economy: current trends

1.2.3. Regulation of capital accumulation and investment

State regulation in the field of capital accumulation and investment activities is aimed at ensuring the necessary rate of capital accumulation, targeted use of accumulation funds ...

History of the economy of the leading countries in the 18th century

fEngland as a classical country of primitive accumulation of capital

In different countries, the process of primitive accumulation of capital had its own national coloring, but, perhaps, in the most convex and embossed, one might say, classical form, it still took place in England. It is in this country...

Section I. Period of Primitive Accumulation of Capital

New ideas of the period of primitive accumulation of capital. Social utopias of the late Middle Ages. Mercantilism as the first school of political economy

I.1 Great geographical discoveries as prerequisites for the emergence of the process of primitive accumulation of capital

The great geographical discoveries are a period in the history of mankind that began in the 15th century and lasted until the 17th century, during which Europeans discovered new lands and sea routes to Africa, America ...

New ideas of the period of primitive accumulation of capital. Social utopias of the late Middle Ages. Mercantilism as the first school of political economy

I.2 Features of the process of primitive accumulation of capital

The main distinguishing feature of the era of primitive capital accumulation was, firstly, the development of commodity-money relations, the formation of a market economy, which left its mark on all aspects of public life of that time.)