Do you know what “human capital” is? What is human capital?

The theory of human capital began to be studied back in the 19th century. Then this became one of the promising directions for the development of economic science. The economic category “human capital” was formed gradually, and at the first stage it was limited to a person’s knowledge and ability to work. Moreover, long time human capital was considered only a social factor of development, that is, from the point of view of economic theory, a cost factor. It was believed that investments in upbringing and education are costly. Already from the second half of the twentieth century. the attitude towards human capital and education has gradually and dramatically changed, and this economic category has become the main achievement, first of all, of the economics of education and labor. Initially, human capital was understood only as a set of investments in a person that increases his ability to work - education and professional skills. Subsequently, the concept of human capital expanded significantly. The latest calculations made by World Bank experts include consumer spending - family spending on food, clothing, housing, education, health care, culture, as well as government spending for these purposes.

The term “human capital” first appeared in the works of American economists Theodore Schultz and Gary Becker.

G. Becker considered human capital as a set of skills, knowledge and abilities of a person, and according to T. Schultz’s definition, human capital is valuable qualities acquired by a person that can be strengthened by appropriate investments. However, T. Schultz and G. Becker paid more attention in order to explain and defend the idea of ​​equal rights with material resources the role of human capital in creating the total social product.

For creating the “foundations of the theory of human capital,” American scientists were awarded Nobel Prize in economics - Theodore Schultz in 1979, Gary Becker in 1992. The founders of the theory of human capital gave it a narrow definition, which over time has expanded and continues to expand, including all new components of human capital.

In more recent works, there is no consensus among scientists on the definition and content of “human capital,” which can be explained by the complexity and versatility of this phenomenon. That is why there are a large number of definitions of this concept:

• - according to W. Bowen, human capital consists of acquired knowledge, skills, motivation and energy that a person is endowed with and which can be used over a certain period of time to produce goods and services;
• - according to Edwin J. Dolan, human capital is capital in the form of mental abilities obtained through training or education or through practical experience;
• - according to M.M. Cretan human capital is a general specific form of life activity that assimilates previous forms and is realized as a result of historical movement human society to its current state;
• - B.M Genkin and B.G. Yudin believe that human capital characterizes the components of human potential that can become a source of income for household, enterprises and countries. Such components can be a person’s physical and creative abilities, his knowledge, skills, activity;
• - according to A.I. Dobrynina, S.A. Dyatlova, E.D. Tsyrenova, human capital is a stock of health, knowledge, skills, abilities, motivations formed as a result of investments and accumulated by a person, which are expediently used in a particular area social reproduction, contribute to the growth of labor productivity and production, thereby influencing the growth of income of a given person;
• - V.S. Efimov considers human capital as a universal, independent component of the “production process”, providing additional value to the product. He also identifies three aspects of human capital:
  • a) biological aspect - preservation of human capital: demography + health + activity;
  • b) social aspect - development of human capital: education + qualifications + social organization + initiative;
  • c) economic aspect - capitalization of human capital: production systems + social institutions + infrastructure of opportunities.

Summarizing the above definitions of human capital, we can distinguish several main approaches: most scientists understand human capital as a set of skills, abilities and abilities of a person, others - only those that were acquired through training, others define it through investments and investments in a person that provide savings certain abilities and qualities. Some researchers also include social, psychological, ideological, and cultural characteristics of people.

The concept of human capital itself was introduced to explain why education and experience affect pay, and to understand what determines the level of education people receive.

Since every person, one way or another, in his life is faced with such concepts as the need to obtain an education, lack of experience when applying for a job, the level of wages, then everyone is able to subjectively define the concept of human capital.

Human capital is often defined as creative potential, physical, moral, psychological and social health, spiritual qualities, human mobility ability. In addition, human capital implies an accumulated stock of health, knowledge, abilities, culture, experience, expediently used for productive activities to create products and services, which increases the income of a person, enterprise, and society.

To more fully define human capital, the following features should be taken into account:

• - nowadays human capital is main value society and the main factor of economic growth;
• - the formation of human capital requires large expenditures both from society and from the individual himself;
• - human capital can be accumulated (in terms of knowledge, skills, abilities, experience);
• - human capital can physically wear out, economically change its value and depreciate;
• - investments in human capital will bring its owner higher income in the future;
• - human capital is inseparable from its carrier - man;
• - despite what sources form human capital (state, family, honest), the receipt of income and the use of human capital is controlled by the person;
• - the functioning of human capital is determined by the free will of a person, depending on his preferences, worldview and culture.

As a result, we can say that human capital is everything that concerns people, their intelligence, knowledge and experience, and includes other qualities such as loyalty, motivation and the ability to work in a team. Despite the wide range of definitions of the concept of human capital, its essence is clear: human capital is defined as a measure of the ability to generate income embodied in a person, which includes innate abilities and talent, as well as education and acquired qualifications.

In the economic literature, there are several approaches to classifying types of human capital. Economists classify types of human capital by elements of costs and investments in human capital.

From the point of view of the nature of promoting the economic well-being of society, there are:

• - Consumer capital - creates a flow of services consumed directly. It can be creative and educational activities. The result of such activities is expressed in the provision to the consumer of such consumer services that lead to the emergence of new ways to satisfy needs or increase efficiency existing methods their satisfaction;
• - Productive capital - creates a flow of services, the consumption of which contributes to social utility. In this case, we mean scientific and educational activities that have practical application specifically in production (the creation of means of production, technologies, production services and products).

The next criterion for classifying types of human capital is the difference between the forms in which it is embodied:

• - Living capital - includes knowledge embodied in a person;
• - Non-living capital - is created when knowledge is embodied in physical, material forms;
• - Institutional capital - consists of living and non-living capital associated with the production of services that satisfy the collective needs of society. It includes all governmental and non-governmental institutions that promote effective use two types of capital (educational and financial institutions).

Based on the form of on-the-job training for employees, we can distinguish:

• - special human capital;
• - total human capital.

Specialized human capital includes skills and knowledge acquired as a result of special training and are of interest only to the company where they were acquired.

Unlike special human capital, general human capital represents knowledge that can be in demand in various areas of human activity.

As a productive factor, human capital can be divided according to the degree of efficiency into negative (destructive) human capital and positive (creative) human capital.

Negative human capital is a part of accumulated human capital that does not provide any useful return on investment in it for society, the economy and impedes the growth of the quality of life of the population, the development of society and the individual. Not every investment in upbringing and education is useful and increases human capital. Corrupt officials, criminals, drug addicts, excessive drinkers and simply slackers are lost investments in them for society and the family. A particularly significant contribution to the negative accumulated human capital can be made by the active part of the nation - its elite, since it is they who determine the policy and development strategy of the country, and lead the nation along the path of either progress, or stagnation or even regression.

Negative human capital requires additional investment to compensate for negative capital accumulated in the past.

Positive human capital (creative) is defined as accumulated human capital that provides a useful return on investment in it in the processes of development and growth. In particular, in the development of the education system, the growth of knowledge, the development of science, the improvement of public health, and the improvement of the quality and availability of information.

Thus, given the existence large quantity definitions and types of human capital, this concept, like many terms, is “a metaphor that transfers the properties of one phenomenon to another according to a common characteristic for them.”

Human capital- a set of knowledge, skills and abilities used to meet the diverse needs of an individual and society as a whole. First time the term was used Theodore Schultz, and his follower - Gary Becker developed this idea, justifying the effectiveness of investments in human capital and formulating an economic approach to human behavior.

Initially, human capital was understood only as a set of investments in a person that increases his ability to work - education and professional skills. Subsequently, the concept of human capital expanded significantly. The latest calculations made by World Bank experts include consumer spending - family expenses on food, clothing, housing, education, health care, culture, as well as government spending for these purposes .

Human capital in a broad sense, it is intensive productive economic development factor, development of society and family, including the educated part of the labor force, knowledge, tools for intellectual and managerial work, living environment and labor activity, ensuring the effective and rational functioning of the human capital as a productive factor of development.

Briefly: Human capital- This intelligence, health, knowledge, high quality and productive work And the quality of life .

Human capital is the main factor in formation and development innovation economy And knowledge economy, as the next highest stage of development.

One of the conditions for the development and improvement of the quality of human capital is high economic freedom index.

Use the classification of human capital :

Individual human capital.

Human capital of the company.

National human capital.

Human capital in developed countries accounts for 70 to 80% of national wealth. In Russia it is about 50%.

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1 Background

2 Broad definition of human capital

3 National human capital

4 Estimates of the value of national human capital in countries around the world

5 National human capital and historical development of countries and civilizations

6 Structure, type and methods of assessing the value of human capital

• 6.1 Structure

  6.2 Types of Human Capital

  6.3 Methods for assessing the value of human capital

7 Human capital is the main factor in the formation of the “knowledge economy”

8 Notes

9 Literature

Background[edit | edit source text]

Elements of the theory of human capital (HC) have existed since ancient times, when the first knowledge and education system were formed.

In the scientific literature, the concept of human capital (Human Capital) appeared in publications of the second half of the 20th century in the works of American economists Theodore Schultz and Gary Becker (1992). For creating the foundations of the theory of human capital (HC), they were awarded the Nobel Prize in Economics - Theodore Schultz in 1979, Gary Becker in 1992. Simon (Semyon) Kuznets, a native of Russia, who received the Nobel Prize, also made a significant contribution to the creation of the theory of HC in economics for 1971

The theory of human capital is based on the achievements of institutional theory, neoclassical theory, neo-Keynesianism and other particular economic theories. Its appearance was a response from economics and related sciences to the demand of the real economy and life. The problem has arisen of an in-depth understanding of the role of man and the accumulated results of his intellectual activity on the pace and quality of development of society and the economy. The impetus for the creation of the theory of human capital was the statistical data on the growth of the economies of developed countries, which exceeded calculations based on taking into account classical growth factors. Analysis of real processes of development and growth in modern conditions led to the approval of human capital as the main productive and social factor development of modern economy and society.

Contributions to the development of the modern theory of human capital were made by T. Schultz, G. Becker, E. Denison, R. Solow, J. Kendrick , S. Kuznets, S. Fabrikant, I. Fisher, R. Lucas and other economists, sociologists and historians.

The concept of human capital is a natural development and generalization of the concepts of human factor and human resource, but human capital is broader economic category .

The economic category “human capital” was formed gradually, and at the first stage it was limited to a person’s knowledge and ability to work. Moreover, for a long time, human capital was considered only a social factor of development, that is, a cost factor, from the point of view of economic theory. It was believed that investments in upbringing and education were unproductive and costly. In the second half of the 20th century, attitudes towards human capital and education gradually changed dramatically .

So, S. Fischer gave the following definition of the Cheka: “Human capital is a measure of the ability embodied in a person to generate income. HR includes innate abilities and talent, as well as education and acquired qualifications." At present, this definition can also be considered a definition of Cheka in the narrow sense.

Simon Kuznets, among the restrictions on the use of the experience of advanced countries by developing countries, put in first place the starting potential of physical capital and human capital. As we can see, Simon Kuznets put the sufficiency of the initial accumulated human capital in first place among the factors determining the successful application of the accumulated experience of advanced countries. And this is no coincidence. A high level and quality of accumulated human capital is necessary for the accelerated implementation of institutional reforms, transformation of the state, technological renewal of production, market transformations of the economy, etc. And, in the end, it is the sufficiently high level and quality of human capital of a country with a catching-up economy that ensures its access to a stable growth in per capita GDP and improvement in the level and quality of life of the population. Thus, human capital, according to Kuznets, is the main dominant factor in the possible stable growth of the economies of developing countries.

American economist Edward Denison(contributed to this issue Robert Solow , John Kendrick etc.) developed a classification of economic growth factors . Of the 23 factors he selected, 4 relate to labor, 4 to capital, 1 to land, and 14 characterize the contribution of scientific and technical progress. According to Denison , economic growth is determined not so much by the quantity of spent factors, but by their quality and the growth of this quality. First place Denison put the quality of the workforce. From an analysis of US economic growth for 1929-82.

Denison concluded that the determining factor in the growth of output per worker (labor productivity) is education, the most important component of the human capital.

T. Schulz 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 main results of investments in people to be the accumulation of people’s ability to work, their effective creative activity in society, maintenance of health, etc. He believed that human capital has the necessary characteristics of a productive nature. CC is capable of accumulating and reproducing. According to Schultz, 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 was perhaps the first to transfer the concept of Cheka to the micro level. He defined the human capital of an enterprise as a set of human skills, knowledge and abilities. As an investment in them, Becker took into account mainly the costs of education and training. Becker assessed the economic efficiency of education, first of all, for the employee 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 secondary general education. The costs of education were considered both direct costs and opportunity costs - lost income during training. G. Becker estimated the return on investment in education as the ratio of income to costs, receiving approximately 12-14% of annual profit.

In 1992, G. S. Becker, professor of economics and sociology at the University of Chicago, was awarded the Nobel Prize in Economics for “The Spread of the Micro economic analysis on a range of aspects of human behavior and interaction, including non-market behavior." Becker's main books - "The Economics of Discrimination", "Human Capital" and "Treatise on the Family" are devoted to various aspects of the theory of human capital.

Becker made special contributions to the theories of competition, strategy and firm development. He introduced a distinction between special and general investments in people. And he emphasized the special importance of special training, 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 by Becker became the basis for the creation of the modern theory of the firm and competition.

Becker, within the framework of the theory of human capital, studied the structure of the distribution of personal income, its age dynamics, inequality in pay for male and female labor, etc. He proved to both politicians and entrepreneurs using extensive statistical material that education is the foundation for increasing incomes and employees, both employers and the state as a whole. As a result, politicians, financiers and entrepreneurs began to view investments in education as promising investments that generate income.

Becker in his works considered a worker as a combination of one unit of simple labor and a certain amount of human capital embodied in him. His wages (income) are a combination of the market price of his simple labor and income from investments made in a person. Moreover, the main part of the income goes to the worker , according to Becker’s estimates, as well as calculations of other researchers, it is human capital that brings .

Introduction

Human capital -- a set of knowledge, skills and abilities used to meet the diverse needs of an individual and society as a whole. Application of the concept of “human capital” allows us to understand the role of social institutions, to find out not only social parameters, but also to conduct an economic analysis of the influence of the social factor on the market economy. In the 20th century, the theory of “human capital” was developed. According to this theory, improving the qualitative characteristics of a person in the fields of education and healthcare ensures the creation economic resources durable. Education transforms the labor force, giving it the ability to perform highly skilled work, and healthcare increases the duration and intensity of use of the individual’s accumulated ability to work. Based on these premises, the productive qualities and characteristics of the worker were recognized as a special form of capital, since they, like other types of capitalized resources, ensure that their owner receives certain income over a period of time.

In the conditions of the modern economy, during the economic crisis, the topic of human capital is especially important and relevant, since in the Republic of Belarus people are the most important resource, as noted by President A.G. Lukashenko at a press conference in October 2009. The new type of worker must receive continuous education throughout his life. Investments in people and their environment allow for more efficient use of society's economic resources. The phenomenon of “human capital” acts as an integral attribute of a market economy.

In this work, I revealed the essence of human capital, examined its structure and main characteristics, studied approaches to the concept of human capital and methods for assessing it. I examined the role and qualitative aspects of the state of human capital in Belarus and based on this I made conclusions about what needs to be changed in order to increase the material and educational level of the population, labor productivity, and attract the attention of the younger generation to scientific activity, the development of which will have a good impact on the general condition of the state.

1.Human capital: concept, main characteristics

1.1 Definition of the essence of human capital

The theory of human capital has a far from simple and very controversial history. On the one hand, human capital as an objective economic phenomenon has been recognized since the times of A. Smith, K. Marx and many other representatives of classical and postclassical economic theory. Smith wrote that fixed capital consists not only of machinery and equipment, but also of the useful abilities of the members of society, the acquisition of which always requires actual costs, which represent fixed capital. K. Marx notes that from the point of view of the direct production process, saving labor time can be considered as the production of fixed capital, and this fixed capital is understood as the person himself. On the other hand, for a long period of time, theoretical economists used in their research not the concept of “human capital”, but categories such as “labor” and “labor force”. Human capital has been and is recognized as an objective reality existing in the world of economic phenomena, but human capital has not yet become a subjective reality in the relevant theoretical constructs and concepts of the majority of representatives of fundamental theoretical science. In addition, even among the few representatives of economic theory of the past and present, there is no agreement even on the key methodological provisions characterizing human capital as a complex and contradictory phenomenon. The term “human capital” first appeared in the works of Theodore Schultz, an economist interested in the difficult situation of underdeveloped countries. Schultz stated that improving the well-being of poor people did not depend on land, technology, or their efforts, but rather on knowledge. He called this qualitative aspect of the economy "human capital." Schultz, who received the Nobel Prize in 1979, proposed the following definition: “All human abilities are either innate or acquired. Each person is born with an individual set of genes that determines his innate abilities. Valuable qualities acquired by a person, which can be enhanced by appropriate investments, we We call it human capital." He considered human capital as the costs accumulated in the country for the reproduction of labor force, regardless of the source of their coverage. The results of such investments are the accumulation of people’s ability to work, their creative activity in society, the maintenance of people’s very lives, health, etc. He also substantiated the need for an expanded interpretation of a number of categories of reproduction, especially accumulation, suggesting that of the product produced in society, not 35-50% is no longer used for the accumulation of the human factor, as followed from most theories of reproduction in the 20th century, but? its total size.

A follower of Theodore Schultz was Gary Becker, who developed this idea, justifying the effectiveness of investments in human capital and formulating an economic approach to human behavior.

Exists great amount approaches to research and an abundance of interpretations of the essence of human capital. If we try to classify the interpretations of human capital existing in modern economic literature, they can be divided into the following varieties: a) “predicative”, b) “resource”, c) “eclectic”.

Predicative interpretations of the essence of human capital are formulations that only come into contact with the sphere of human capital, but do not penetrate in depth, do not identify and do not reflect the real essence of the problem.

Resource-based interpretations of the essence of human capital are the most common in economic literature. The meaning of “resource” definitions of human capital is that here we are not talking about capital as actualized resources, but directly about the resources themselves, which are just potential, and not a fact of creative activity.

The eclectic characteristics of the essence and related content of human capital absorb various disjointed provisions and interpretations of the phenomenon under consideration. In particular, human capital is defined here simultaneously as an element of national wealth, as part of the economic resources of the individual, organization and society as a whole, as the process of creating the required goods, etc.

The presented interpretations of the essence of human capital are the object of criticism, since they do not reflect the qualitative certainty of the phenomenon under consideration. At the same time, these definitions and characteristics of human capital are very useful from the point of view of identifying its socio-economic content, as well as studying various aspects of the formation and development of this capital. But, in order to understand what the qualitative definition of human capital is and how this complex socio-economic phenomenon should be interpreted in connection with this, it is necessary to carry out a research “ascent” from “general” to “special”.

Let's consider the “general” in the characteristics of human capital. If capital as such represents any value directly used to create vital goods, then a person should be considered as a capital most important asset, as a basic value, without which it is practically impossible to create any vital good. From the “general” point of view, the essence of human capital lies in its ability to be used to create certain goods; it is a value that can ensure the creation of other values. “Special” in human capital lies in the fact that the bearer of creating value is the individual herself, on whose cultural level and education, motivation and attitudes, decisions and actions depends not only the actualization of human forces and their transformation into a creative, capital value, but also directly any creative process. Only a person sets himself and other types of inanimate capital in motion; a person organizes and manages the creative process, giving it direction and filling it with a certain content. This circumstance reveals the first, initial feature of human capital: in the system of national capital it is basic, integrating. Direct investments in human capital are indirect investments in the natural and material capital of the nation. The importance of human capital as an integrator of all types of capital lies in the creation of a technological linkage of existing factors of production, in the formation of a favorable socio-economic and institutional environment that ensures the most effective use of the elements of natural and material capital involved.

The most important feature of human capital is its quality of self-growth, i.e. human capital, considered in unity with the person himself, grows itself, forms and reproduces the necessary creative qualities and characteristics. The dynamics, complexities and contradictions of the modern reproduction process, as well as the growing and changing requirements for the creation of vital goods, necessitate not only accelerated, but also advanced, diversified development of human capital.

The considered features of human capital are reduced to one more specific property, which appears in the form of the ability of this capital to internally systematize all the qualitative characteristics and quantitative properties of the individual; with the direct creative use of human capital, a system of human properties works, the individual is realized as such, and not just one or two of its characteristic features.

Modern the most important feature human capital is that the purchase and sale of human abilities for certain creative activities carried out on the human capital market is less and less reflected and explained by the principle of equivalent exchange, and is increasingly acquiring an external character. Identification of the external nature of human interactions and the development of organization members, as well as the presence of a rational principle in human capital as such, allows us to highlight another of its features as a factor of production. This feature lies in the fact that human capital is the only factor of production that, in the process of use, is simultaneously consumed and developed. Thus, human capital acquires a multiplicative, or “double” value. The multiplier effect is that as a result of the production process with the aim of creating some kind of life benefit, the creative value of human capital “at the output” exceeds its value “at the input”. This explains the constantly growing efficiency of investments in human capital, with the relatively declining effectiveness of investments in natural and material capital.

The most important feature of human capital is its ability to create wealth without the participation of natural and material capital. Such benefits are, first of all, new knowledge necessary for human development.

Historical-economic and logical-epistemological analysis of existing interpretations of human capital, as well as identifying the characteristics of human capital as a factor of production allows us to clarify the definition of the essence of human capital, which is understood as a specific value represented by a system of constantly developing, creatively oriented and in demand human properties, conscious and purposeful the use of which ensures the expanded reproduction of vital benefits required for development.

In modern economic literature, the categories “human capital”, “labor”, “labor” are often considered as factors of production. Meanwhile, the identified essence of human capital allows us to say that all these categories are multi-level. The workforce represents a certain human resource, potential readiness for creative activity. Human capital expresses a real readiness for the creative use of a certain combination of human knowledge and abilities. Labor is the materialization of this real readiness into the fact of activity to create this or that good.

The use of the concept of “human capital” allows us to understand the role of social institutions, to find out not only social parameters, but also to conduct an economic analysis of the influence of the social factor on the market economy. Becker in his work “Human Capital” introduces the concept of “special human capital”, that is, this means only those skills that are of interest to any one company, any one type of activity. O. Toffler introduces the concept of “symbolic capital - knowledge”, which, unlike traditional forms of capital, is inexhaustible and at the same time accessible to an infinite number of users without restrictions.

1.2 Object structure of human capital

Identification and justification of the properties of human capital is a search and definition of its material, ontological basis, it is a characteristic of its objects and, in general, the object structure. In modern economic literature, a lot has been developed theoretical provisions regarding the structural components of human capital. Researchers most often include human knowledge, skills, abilities and abilities as objects of human capital. In research recent years You can often find a broader and at the same time deeper approach to this problem. However, any object and every socio-economic phenomenon that has at least some relation to human creative activity is often declared an element of human capital, therefore many structural elements of human capital need some clarification to reveal their actual involvement in human capital.

When identifying elements of the object structure of human capital, it is necessary to distinguish between values. For example, general culture a person should not be classified as an element of human capital, since culture does not directly create the benefits of life, but is only reflected in the direction of the creative process, forms the value vector of creativity labor activity individuals, organizations and the nation as a whole. As for economic, professional, industrial, technological, organizational culture, etc., in this case we are talking about specific values-institutions that regulate and coordinate the system of internal and external transactions. The elements of the named types of culture, which directly influence the process of production of vital goods, are of a completely human nature and can reasonably be attributed to the elements of human capital, called institutional capital.

Also distinguished:

Intellectual capital: a specific value represented by mental abilities of a certain level, the targeted use of which ensures profitability in the form of “fruit-bearing” institutions;

Labor;

Social capital: a specific value that acts as a system of stable forms of social connections and relationships that arise and develop in the process social interactions, which create the social status of the individual and his place in the system of social transactions.

If we abstract from the genetic approach to identifying the object structure of human capital, we can state that it consists of labor, intellectual, institutional and social capital. Taking into account the cause-and-effect relationships and genetic aspects of the problem under consideration, the main elements of human capital are the labor and intellectual capital of the individual, and the derived elements are institutional and social capital. Moreover, social capital is sometimes considered as part of institutional capital.

1.3 Main characteristics of human capital

Each person lives in three main stages in his life, at each of which he has a need for expenses (consumption), and therefore a source of income. In the first stage, a person grows up and receives an education. The education and skills we acquire provide us with the ability to earn an income or receive a salary for the rest of our lives. This ability to earn money is called human capital. The second stage of a person's life is economically productive, when a person works and earns income. The source of a person's (household's) income throughout life is its total capital, or total wealth. In a simplified case, a person's total capital consists of two parts: his human capital and his financial capital. Financial capital includes tradable assets such as stocks, bonds, shares investment funds. Human capital is an “illiquid asset” and is defined as the present value of all future labor income of a person, including income that will be paid pension funds. The main task of a person in the matter of personal finance is formulated as follows: “By regularly saving part of labor income throughout life, transform human capital into financial capital, which will become the main source of regular income when human capital runs out.” In essence, a person needs to systematically replace one form of capital with another. The third stage is a person’s life after retirement. Replacing human capital with financial capital is necessary so that a person can live comfortably during that period of life when he cannot work for health reasons. However, it is worth noting the types of risks that a person or their family may face during their lifetime. The risk of “early consumption” of accumulated financial capital. A person can encounter it at the third stage of life, i.e. after retirement. But there are situations when a person loses the ability to work even before retirement or dies early. Therefore, there are two more types of risks to which human capital is exposed: - The risk of fluctuation (temporary loss) of income from human capital - The risk of a complete loss of income from human capital - the death of the breadwinner.

In order to understand the essence of human capital, you need to study its structure. For most people, human capital brings a stable, fixed income from period to period. However, there are professions where income from human capital is closely related to events occurring in certain sectors of the economy and in certain markets. For example, the dynamics of the income of a person working in the financial sector is very closely related to the state of the stock market, and the dynamics of a realtor’s income is closely related to the state of the residential real estate market. In fact, the human capital of the vast majority of people has a mixed structure: in stable times it brings a fixed income, and in unstable times it depends on conditions and events. The structure of human capital is determined on the basis of such parameters as the nature of a person’s work, his industry affiliation, the close relationship between the dynamics of labor income and various classes (subclasses) of financial assets, etc. An individual's human capital structure may change over time, which should be reflected in investment policy recommendations. The structure of human capital determines such parameters of the future model as a person’s ability to take risks, the recommended structure of the overall portfolio, as well as the structure of a person’s financial capital.

The type of human capital determines a person's ability to bear the risks of financial assets. Depending on the structure, human capital can be classified into one of three types: protected, balanced or risky. If human capital brings a stable fixed income from period to period (belongs to the protected type), then a person can easily afford to invest most of his money in stocks, and vice versa. The type of human capital is used in the second stage, as well as in determining the value of human capital. The value of human capital is defined as the present value of all future labor earnings of a person, including income that will be paid by pension funds. The value of human capital is influenced by the age (working horizon) of a person, his income, possible variability of income, taxes, the rate of wage indexation for inflation, the size of upcoming pension payments, as well as the income discount rate, which is partly determined by the type of human capital (more precisely, related to them with risks.

On modern stage the economy in developed countries has become technotronic, which is reflected in the unity “man – computer – automated means of production”. That is why socio-economic development in the second half of the last century and at the beginning of the current one is characterized by the growing role of the human factor. In such conditions, a person, who is the main productive force, must be armed with the means of production and knowledge, that is, be sufficiently educated. Information support is a known method of transmission and helps a person to implement appropriate labor actions, but does not execute them instead. Currently, intellectual work that generates knowledge is becoming increasingly valuable. That is why in the modern economy human resources play a decisive role in achieving competitive advantages and ensuring quality parameters of economic growth.

Building your intellectual edge is the key to success. In the current economic conditions, the development of the intellectual factor is more effective than, for example, capital-intensive improvement of the organization of the use of various outdated technologies. According to Peter Drucker, “no matter what material resources a system has, they do not multiply on their own. Both the state and the company are developed by the energy and intelligence of the people who make them up.”

Nowadays, an enterprise's labor resources are increasingly viewed as human capital. It should be noted that the concepts of “labor resources” and “human capital” are not synonymous. Labor resources can be transformed into capital, but for this it is necessary to create conditions that provide the opportunity to realize human potential in the results of the organization's activities. That is, if a person is engaged in social production, and labor resources bring real income and create wealth, then they can be called capital.
The effectiveness of the development of an enterprise and the economy of states as a whole largely depends on how much money and at what point in time it is allocated to the development of human capital. This type investments bring a significant economic and social effect in terms of volume, long-term and integral in nature, therefore it is the most profitable from the point of view of the individual, the enterprise and the entire society as a whole. Thus, in the USA, according to some estimates, part of the investment in human capital is more than 15% of GDP, which exceeds gross investment in houses, equipment and warehouses.

According to the website auditfin.com, in developed countries, 60% of the increase in national income is due to the increase in knowledge and education of society. American scientists have calculated the amount of GDP produced by workers with a duration of education of 10.5; 12.5 and more than 14 years: it turned out that it is the third group (with more than 14 years of education) that accounts for over half of GDP. Similar studies were carried out in Russia several years ago. According to " Russian newspaper The results were similar: college-educated people, who made up a quarter of workers, produced 56% of the value of national income.

Currently, the problem of the formation, development and use of human capital is receiving considerable attention. Ukrainian scientists such as E.A. Grishnova, A.M. Kolot, V.N. Petyukh, V.M. Danyuk, V.I. Kutsenko, G.I. Evtushenko, T.I. Shparaga, Ya.M. Dutkevich, V.P. Antonyuk, I.N. Lashchenko, Yu.B. Skazhenik, A.V. Lokhmach and many others explore the essence of human capital and the specifics of its formation in Ukraine.

The emergence of the theory of human capital is associated with the scientific works of William Patty, Adam Smith, and Alfred Marshall. The final formation of the theory of human capital dates back to the 50-60s. XX century. Theoretical basis were formulated by the American economist Theodore Schultz, and the basic theoretical model was developed by Gary Becker. Becker was the first to carry out a statistically objective calculation of the economic efficiency of the education process, defining the return on investment in education as the ratio of income to expenses. According to G. Becker's estimates, the efficiency is 12-14% of annual profit.

According to the author, to determine income from higher education, it is necessary to compare the income of individuals who graduated from college and those who graduated only from high school. At the same time, it is possible to include in the costs of study, along with direct expenses, the income lost by students during their years of study, which is measured by the value of the time they spent on studying. Despite the presence of a large number of opponents, the theory of human capital is one of the main ones in the field of research devoted to human resources.

One of the controversial issues remains the formation of human capital. The definition of which is an important aspect in considering the entire system of human capital restoration. The formation of human capital needs to be studied as a process of searching, renewing and improving high-quality productive characteristics of a person with which he acts in social production. The factors on which the formation of human capital depends can be combined into the following groups: socio-demographic, institutional, integration, socio-mental, environmental, economic, production, demographic, socio-economic (Fig. 1).

Fig.1: Groups of factors that form human capital

From this we can conclude that the category of human capital is a complex structurally systemic object of socio-economic research. O.A. Grishnova believes that human capital is an economic category that characterizes the totality of productive abilities, personal traits and motivations of individuals formed and developed as a result of investments, which are in their ownership, are used in economic activity, contribute to the growth of labor productivity and thereby influence growth income (earnings) of its owner and national income.

Thus, human capital should be considered at the national, regional, industry levels, as well as at the level of the enterprise and the individual. At the macroeconomic level, human capital includes the contribution of the region, country to the level of education, professional training and competence, health, and so on. This level consists of the aggregate human capital of the entire population of a region or country. At the enterprise level, human capital represents the combined skills and productive abilities of all its employees. At the individual level, human capital is knowledge, skills, accumulated experience and other production characteristics acquired by a person in the process of study, professional training, practical experience through which he can earn income.
American scientist J. Kendrick distinguishes between tangible and intangible forms of human capital. To material capital embodied in people, he includes expenses necessary for the physical formation of a person, that is, expenses for raising children (excluding expenses for their education). J. Kendrick considers intangible human capital the accumulated expenses for general education and special training, part of the accumulated expenses for health care and the costs of moving labor. He believes that the concept of “human capital” reflects not only a quantitative assessment of qualifications and educational potential, but also expands the boundaries of the concept of “capital”, reflecting all workers in the role of entrepreneurs who have property that generates profit. In this interpretation, each employee who has a certain, growing level of education and practical experience becomes the owner of “individual capital,” investments in which increase his future income. With this approach, the fundamental line between social classes is erased, leaving only differences in the scale of entrepreneurial property, and not in the lack of it among workers. In this case, the role of entrepreneurship is constantly decreasing, and employees become the owners of an increasingly larger part of the capital.

MM. Kritsky believes that human capital is realized as an enrichment of human life and society, based on saving direct labor. The basic law of movement of human capital expresses the unity of saving labor and enriching this life activity. Human capital is the self-enrichment of people’s life activities, which is realized in the quality of their life.

Understanding human capital as a set of socially expedient production knowledge, skills, and abilities provides the basis for the following important generalizations:

• human capital is a combination of natural abilities and human energy with acquired general educational and professional knowledge. Such unification occurs in the process of forming human capital through all types of acquisition of new knowledge based on certain investments;
• human capital should be considered at three levels: macroeconomic, enterprise level and individual level;
• human capital is divided into tangible and intangible forms. The tangible form of human capital is the costs of the physical formation of a person, and the intangible form includes expenses for education, health care and the movement of labor.

There is no unity in the views of researchers on the problem of the relationship between human and physical capital. One of the main problems of the present time is the distinction between the concepts of “human capital” and “labor force”. Some consider these two concepts to be synonymous, others give definitions that are similar in content. According to O.F. Liskov, in order to form a labor force - a product that is put up for sale, an individual must select the necessary elements of human capital included in the labor force, that is, the labor force consists of some necessary elements human capital.

Most of these features of physical and human capital, formulated by S.A. Woodpecker, fair:

• human capital takes the form of variable capital and interacts with physical capital as part of total productive capital;
• both capitals must correspond to each other, that is, complex and expensive equipment must be managed by highly qualified specialists, who in turn are highly paid;
• the formation of both requires significant expenses and diversion of funds from current consumption;
• investments in both physical and human capital can lead to accumulation;
• human and physical capital have a monetary value.

There are a number of other analogies between human and physical capital. For example, both bring income to the owner, both are integral components of economic growth. Investment decisions and their consequences are analyzed in the same way for both physical and human capital.

Russian economist A.F. Lyskov notes that the most important property human capital is its dynamic nature. Elements are constantly added to human capital under the influence of certain circumstances, and the value of existing ones decreases, increases or is completely removed. This is how the value of human capital itself changes. Often only the positive dynamics of human capital are considered, but negative dynamics also have an impact on manufacturing process and on the success of the enterprise as a whole. Another feature of human capital is the nature of the risk that an entrepreneur assumes when purchasing labor.

Other Russian scientists believe that human capital has a dual character. In a broad sense, it should be considered as a socio-economic form existing quality human potential on the scale of a particular society. In a narrow sense, this is that part of it that is productively used by entrepreneurs to make a profit and bears the signs of K. Marx’s variable capital. The theory of human capital divides it into two types: general and specific. Total capital comprises general training employee, allowing him to work in different profiles at many enterprises, paid for by himself. Specific capital is training directly related to the activities of a particular enterprise and paid for by it.

When an employee is released, both parties suffer losses: the company has wasted money on training, and the employee will not be able to transfer the acquired knowledge to another organization. It is important for an employee to remain at the enterprise, since when changing jobs he will have to master specific training from scratch. The enterprise, in turn, clings to the employee, because there is no such specific resource on the labor market. A striking example of specific human capital are workers in knowledge-intensive industries, such as nuclear and aircraft manufacturing. Therefore, the closure of such an industry leads to a depreciation of specific human capital.

Human capital is also classified according to its forms:

• living capital contains knowledge and health embodied in a person;
• inanimate capital, which is created in cases where knowledge is translated into physical and material forms;
• institutional capital is the institutions that contribute to the effective use of all types of human capital.

Human capital, being part of total capital, represents the accumulated costs of general education, special training, healthcare, and movement of labor.

There is a classification by type of expenses and investments in human capital. I.V. Ilyinsky identifies a classification according to the types of expenses and investments in human capital, divided into the following components: education capital, health capital and cultural capital. Health capital is an investment in a person made with the aim of forming, supporting, improving and strengthening his health and performance. It is the basis for human capital in general. Educational capital consists of expenses for a person’s education, starting with general secondary education and continuing with studies during working life. Cultural capital includes expenses for the constant improvement of a person’s cultural level.

There are two types of capital based on the form of consumption:

• consumer – created by the flow of services consumed directly (creative and educational activities);
• productive, consumption that contributes to social utility (the creation of means of production, technologies, productive services and products).

It is also worth keeping in mind that in the theory of human capital, the concept of “capital” is interpreted differently than in the methodology of K. Marx, who wrote that “capital is not a thing, but a certain, social production relation belonging to a certain historical formation of society, which represented in a thing and gives this thing a specific social character.” In Marxist theory, this concept is considered based on social class positions, as relations of ownership and control over the means of production. In classical English political economy, the concept of capital combined two aspects: firstly, control over the factors of production and, secondly, the right to receive future income. Neoclassical theory connects the concept of capital with the ability to generate income.

The connection between human capital and capital can be traced through the concepts of labor and variable capital, which is directed by the entrepreneur to acquire labor. Labor force is that part of human capital that an individual is ready to sell to an entrepreneur in order to receive from the latter the means of subsistence for himself and his family in the form wages. K. Marx believed that “becoming a commodity, labor power, like any other commodity, has two properties: value and use value.” The first is interesting for the worker, because this is the price of labor power, which is equal to the amount of his wages. The second is of interest to the employer, since it is through the productive consumption of labor that added value is created, which is appropriated by the entrepreneur.
Proponents of the theory of human capital use the example of obtaining an education to justify the growing cost of capital: if an increase in the educational level of an employee entails additional earnings that exceed the cost of training, then the cost of education is characterized as an investment in human capital. Critics of the theory of human capital believe that there is no self-growing value, that is, capital. This is justified by the fact that a necessary condition for increasing the cost of qualifications is the work of the employee himself; it does not increase on its own.

Currently, the role of science and education is growing, and the importance of intellectual activity in all spheres of production is increasing. Intellectual work, which is the activity of people in production, assimilation and practical application knowledge, acquired a dominant position. This process manifests itself in two ways: the role of such branches of the social sphere as education and science is growing; The importance of intellectual activity within other sectors of the national economy is increasing. These trends contribute to the formation and improvement of the educational, professional, scientific, spiritual potential of society and are the most important factors socio-economic progress. At the beginning of the 20th century, according to A. Marshall, the number of manual workers was five times greater than the number of intellectual workers. Now in developed countries more than 60% of the economically active population is engaged in mental work, and in the USA - 75%.
Very convincing factual data on the dramatic shifts in the proportions of capital investments that have occurred over the past centuries are cited in the article by V. Shchetinin “Human capital and the ambiguity of its interpretation.” If in the XVII–XVIII centuries. in the total capital specific gravity human capital did not exceed 10%, then by 1913 it rose to almost 33%. But these proportions changed dramatically in the second half of the 20th century. and especially over the last two decades due to the information revolution. In Western countries, the share of accumulated investments in human capital in the total fund of their capitalized development expenditures rose, according to minimal estimates, to 56-57% in 1973 and 67-69% (in the USA to 74-76%) in 1997–1998 gg. (Table 1) .

Table 1 - Change in the structure of total capital in Western countries%.

The undoubted merit of human capital theorists is the recognition of the primary role of man in social production. This is due to the strengthening role of education, which is becoming the main resource and source of the formation of a highly developed workforce. It should be noted that domestic enterprises currently have at their disposal a fairly high potential of human capital. In 2002, 25.5% of all Ukrainian workers graduated from universities I-II levels accreditation, another 22.6% are universities of III-IV accreditation levels; in industry, the share of such workers was 25 and 15.1%, respectively.
The theory of human capital can be used as an analytical tool in identifying the economic efficiency of education. Proponents of this theory clearly defined its individual economic effect for an individual. The main result of the economic return of education is the increase in employee income due to an increase in his educational and professional level. Human capital theorists argue that differences in earnings reflect differences in labor productivity. Income from education is calculated as the difference in lifetime earnings of those with unequal education. Education expenses, in addition to direct expenses, also include lost income. This is the potential earnings that a person could receive if he worked and did not study.

The theory of human capital has gained significant public dissemination and recognition in world scientific thought. Scientific research is constantly being conducted and many scientific publications are published on these issues. Unfortunately, today issues related to the study of problems of formation, preservation and increasing the efficiency of use of human capital in Ukraine are among the most unexplored in general structure economic science.

Currently, there is a need for a strategy for comprehensive learning throughout a person's life, consisting of learning in early childhood, primary education, an improved school-to-work transition system with closer links between education and the labor market, and from effective systems training that provides the opportunity to stay in education throughout life. However, in order for this to become feasible, constant investments in human capital are required, both at the individual level and at the level of the enterprise and the state.

Dividing investments in human capital at the individual, enterprise and state levels is also advisable due to the fact that the degree of underinvestment at these levels is different. By nature, man is, on the one hand, a physical being, and on the other hand, a social being. Because of this, he acts as a bearer of both certain natural individual abilities and talents that he possesses from birth and which nature has endowed him with, as well as accumulated knowledge, skills, and abilities acquired in the process of social life and through the expenditure of certain physical, material and financial resources.

Natural human abilities and acquired social qualities are similar in their economic role natural resources and physical capital. This is manifested in the fact that in its original state, a person, like natural resources, does not bring any economic effect. But after certain expenses and preparation are made, individual human capital and a set of individual competencies are formed, which can subsequently potentially generate income, like physical capital.
Individual human capital will generate income only if a person has the opportunity to employ himself in social production by organizing his own activities or selling his labor to an entrepreneur. This is what justifies the feasibility of using individual human capital. To transform individual human capital into productive capital, conditions must be identified that would ensure the realization of human potential in the results of its activities.
Getting an education and starting work is initial stage formation of individual human capital. Next stage is longer lasting. It is based on the acquisition of professional qualifications and life experience. Human capital represents intangible durable goods that are accumulated and realized as a result production activities people in time. The most important feature of capital is that it is itself a product of production. Human capital as a product of production represents knowledge, skills and abilities accumulated in the process of training and work. Human capital, like any other, can accumulate. The accumulation of human capital begins with preschool education and continues throughout social activity.

The main tool for the formation of human capital, both at the individual level and at the enterprise and state levels, is investing in people. Investments in human capital are all types of investments in a person that can be valued in monetary or other form and are expedient in nature, that is, they contribute to increased labor productivity and increased income at all three levels. Current expenses are carried out with the expectation that they will be repeatedly compensated by higher levels of income in the future.

Of all types of investments in human capital, the most important are investments in health and education, as well as in ongoing vocational training. Health care expenditures, which include health care, lifestyle improvements, and others, create conditions for improving the quality and efficiency of human capital use. The peculiarity of such investments is that they contribute to a better perception of knowledge, skills and abilities and, accordingly, contribute to an increase in human productivity. General and vocational education, in turn, improves the quality and level of human knowledge, and, consequently, improves the quality of human capital as a whole.

In comparison with investments in other forms of capital, investments in human capital are the most profitable from the point of view of both the individual and the entire society as a whole, since they bring a fairly significant economic and social effect in terms of volume, long-term and integral in nature.

Investment is an important prerequisite for the formation of human capital, but is not yet development. The development of human capital occurs both in the process of initial investment and subsequent investment, which occurs in the process of practical human activity. That is, the development of human capital is the process of creating a person’s productive abilities through investments in specific processes of his activity.

It should be especially noted that personal motivation is a very important and necessary condition for the process of human capital circulation (Fig. 2) to be completed. Thanks to this process, there is a qualitative renewal of human capital through the emergence of new needs of the market for the production of goods, which are constantly growing and require new competencies and in which an increase in the level of knowledge and practical skills of people is accompanied by the development of opportunities for their practical implementation. Due to this, they increase individual income, and the country's national income is growing.

Effective career management requires having the necessary information about what is happening to employees during different stages their careers. To do this, the enterprise can conduct special research, the results of which are presented in the form of a career chart, which makes it possible to track the employee’s work history.

Each stage of an employee’s working career is connected not only to the level of the position, but also to a certain stage in life. Scientists distinguish the following stages of a working career: previous, formation, promotion, retention, completion and retirement.

The previous stage (up to 25 years) is associated with obtaining secondary or higher education or a profession. During this period, a person can change several types of activities in search of the most suitable one that would satisfy all his needs. If such an activity is defined, the process of self-affirmation of the employee as an individual begins.

Formation (25-30 years) is the period of mastering the acquired profession, acquiring experience and skills. At this stage, qualifications are formed, the need for independence arises, a family is created, which stimulates the employee to increase income.

Promotion stage (30-45 years). During this period, the process of growth and promotion occurs, the process of self-expression begins, the need for self-affirmation, achievement of higher status and level of remuneration grows.

The preservation stage (45-60 years) is characterized by actions to consolidate the achieved results, the highest level of improvement of qualifications, knowledge, skills, experience, craftsmanship begins, the beginning of respect, the need for self-expression grows. A person reaches the heights of independence and self-affirmation.

The final stage (60-65 years) is the search for a replacement, transfer of knowledge and skills to young people, preparation for retirement. Self-expression stabilizes, respect grows, and interest in other sources of income intensifies.

Retirement stage (after 65 years) - retirement, preparation and conduct of a new type of activity, self-expression in new field activities, stabilization of respect, health care, pension size.

Let's analyze the stages of the working career of an employee of our enterprise, table. 2.

Table 2 – Career of the head of the financial and economic department of our enterprise

A career chart is a career management tool that is a graphical description of what should happen or is happening to people at different stages of their career.

Based work book employee of our enterprise, it was established that his work career is a “springboard” model within a certain enterprise. Figure 3 allows us to conclude that the main reason for demotion at certain stages of work activity is the transfer to other enterprises.

The period of a working career is the first before the start of university studies and the employment of low-paid professions is determined by the young age of the worker, industrial adaptation, secondary education and insufficient knowledge and skills at work. Work in positions such as apprentice miner, 5th grade tunneler is conditioned by training at the Donetsk Polytechnic Institute and practical training by workers. The position of acting head of the economic analysis department, which the employee held from the age of 23, characterizes the beginning of self-affirmation and the process of completing production adaptation. Since the employee holds the position of head of the financial and economic department at the age of 38, one can judge that this is not yet the maximum possible level of his professional development. Until the age of 45, he has the opportunity to rise to the position of director through the ranks.

As Fig. 4, the employee whose career we are analyzing, before taking the position of head of the financial and economic department of our enterprise, changed several positions and enterprises. Ukrainian scientists propose an indicator to reflect promotions received by an employee within a particular enterprise. Due to the fact that the number of promotions in itself does not indicate anything, it is worth correlating it with the time during which the person works. We get the following expression for this indicator:

where P is an indicator of the rate of promotions that the employee received;
m – the number of promotions that the employee received at the enterprise;
t – time during which the employee is engaged in labor activity at this enterprise, years.

Consequently, the employee whose career is being analyzed changed eleven enterprises during his career. At some he did not receive a single promotion, therefore the indicator for other enterprises should be calculated using the above formula (Table 3).

Table 3 - Calculation of the rate of increases that the employee received

Thus, calculations indicate that the most effective career in terms of speed of advancement is of this employee observed at the enterprise Donetsk branch of Joint Stock Bank "INKO", where the calculated rate of increase is the highest in comparison with others and is equal to 1.28. However, the figure indicates that from the point of view of the achieved social status of the director of economics and marketing, and, consequently, the level of wages, a career at the Ukrogneupor Association is more effective. Therefore, when calculating the effectiveness of a career, it is necessary to take into account various factors, such as the level of wages, the social status of the employee, the employee’s own life value orientations, and his worldview. This is due to the fact that the employee compares his career not only with career advancement, but also with life goals for the future.

Professional training of employees is a multifunctional process that affects all components of the enterprise. The following directly depend on the scale, progress and results of training:

• current and future performance of the enterprise;
• current and future expenses associated with the activities of the enterprise;
• the level of risk of incompetent actions of personnel during the operation of the enterprise.

The result of the vocational training system is not unambiguous, therefore it is necessary to assess the economic efficiency of vocational training of workers. Possible goals for calculating the economic efficiency of the vocational training process are:

• determination optimal size training costs as part of total production costs;
• making decisions regarding forms and methods of training;
• comparison different options technologies and tools for training;
• comparison of the economic efficiency of training with the economic efficiency of other possible investments of the enterprise’s funds, which provide a commensurate increase in the efficiency of the main production.

The economic efficiency of any vocational training activities can be determined by the ratio between indicators that describe the results of the enterprise's activities after the start of the activities, and indicators characterizing the total costs associated with the activities of the enterprise for the same period.

In practice, cost indicators when assessing economic efficiency are selected so that they can be summed up, that is, reduced to one point in time and adjusted for the share of the analyzed event in total costs. In this case, the indicator of the economic efficiency of an event is the difference between the amount of its contribution to the increase in the result of the enterprise’s activities and the amount of expenses. The economic efficiency of vocational training is determined by the ratio between the total costs of organizing and conducting the educational process and financial results training, expressed by an increase in the results of the enterprise’s activities, an increase in its potential, a reduction in the costs of ensuring the functioning of the enterprise, and a reduction in the level of risk of its functioning.

The connection between the training process and changes in enterprise performance indicators is expressed by a number of factors that reflect changes in motivation, functional behavior and social relationships of employees who have undergone training. The results of implementing a personnel training system may include:

• increase in the volume of services provided as a result of meeting the additional need for workers in the professional and qualification areas;
• reducing the cost of work performed;
• improving the quality of services provided;
• reducing the level of staff turnover as a result of professional training of personnel;
• the effect of the introduction of inventions and rationalization proposals of employees who have been trained according to the training program;
• increasing the speed of work of trained employees;
• reducing the duration of analysis and assessment of the situation;
• broadening one's horizons, increasing the number of options considered when making decisions by managers and specialists, which affects the optimality of decisions made;
• reduction of losses from inaccurate assessment of the situation and incorrect actions of employees, which is associated with the consolidation of skills in more competent management of technical systems during the training process;
• preventing losses from the unforeseen occurrence of undesirable events and situations, limiting the spread of so-called “chains of undesirable developments of events”;
• reducing the likelihood of accidents and equipment breakdowns, threats to human life and health;
• strengthening the corporate consciousness of employees, bringing together the personal interests of employees with the interests of the enterprise;
• exchange of information between employees of different enterprises who undergo training together, dissemination of best practices and other innovations;
• increasing the likelihood of coordinated awareness joint activities and decision making.

Improving the quality of work can be assessed:

• a decrease in the number of erroneous actions of one employee throughout the year associated with training results;
• expenses to eliminate the consequences of the employee’s erroneous actions.

An increase in the number of action options is assessed by a change in the number of action options per employee, which is associated with the completion of training and the average contribution from the implementation of each option to the result (income) of the training system.

The overall effect of all groups of factors is measured by the increase in the result of the enterprise’s activities (income).

Thus, the economic efficiency of professional training for our company’s personnel was assessed using the net present value method.
The discounting method is used to reduce income and expenses to one moment of labor. Calculation of income from investments in human capital involves their progressive discounting and comparison with current expenses. Because income received in the future always has less value for people compared to those received today.

Net present value is considered a criterion for the feasibility of an investment project in human capital and is calculated using the formula:

where NPV is the net present value of human capital, UAH;
Bt – income from investments in human capital in period t, thousand UAH;
Сt – amount of expenses in period t, thousand UAH;
n – number of periods;
i – interest rate index, or discount rate.

An investment in human capital is profitable if the net present value of capital is greater than or equal to zero. If NPV=0, the investor only recovers his expenses. The higher the net present value of human capital relative to zero, the more efficient the investment.

Let's consider investments in human capital that were made by our enterprise in 2007 and 2008 and planned for 2009 (Table 4).

Table 4 – Indicators of economic efficiency of professional training of personnel of our enterprise for 2007-2009.

The difficulty of applying this method in practice is the choice of interest level - the discount factor. IN market economy this value is determined based on the deposit interest on deposits. In practice, it is accepted above this value due to inflation and the risk associated with investments.

In our case, the discount rate was 10%, which is considered fair for equity. Consequently, we will trace the dependence of the value of the net present value on the size of the established interest rate. To do this, we will calculate the net present value for different values ​​of the discount rate, table. 5 .

Table 5 - The cost of human capital and the interest rate of our enterprise in 2007 and 2008.

Based on the calculations given in Table 5, a graph of the dependence of net present value on the discount rate was constructed, Fig. 5.

Therefore, as the graph shows, investment projects in the human capital of our enterprise, which were implemented in 2007 and 2008 and planned for 2009, are minimally profitable at a discount rate of 90%, that is, at such a rate percent, the efficiency of projects reaches a limit and the company only recovers its costs from personnel training. Under conditions, if the discount rate exceeds 90%, it would be advisable to abandon investment projects in vocational training.

By summarizing the above, the following conclusions can be drawn:

1. Human capital is a combination of natural abilities, acquired knowledge, skills, abilities in the process of production activities, as well as mobility, motivation and physical condition of a person. In other words, human capital is a set of competencies that is expediently used by a person in one or another sphere of social reproduction and contributes to the growth of labor productivity and production efficiency.
2. The development of human capital occurs throughout the entire social activity of a person through constant investment both at the individual level and at the level of the enterprise and the state.
3. Investments in human capital are the most profitable compared to other forms of capital, since they bring a fairly significant and long-lasting economic and social effect.

Literature

1. Drucker P. Effective management. – M: GRAND, 2001.
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• Personnel policy, Corporate culture

What is the essence of the concept of “human capital”?

No matter how developed the state is, no matter what level its economy and scientific and technical progress are at, all this would not be possible without the most important element of all processes - man. In the advanced countries of the world, there is increasing development in economic and social spheres life is accompanied

strengthening the role of the human factor. When the resource base is exhausted, human resources become the key point that ensures the further development of the economy. The scientific literature presents a huge variety of interpretations of this category, which can be summarized into one: human capital is the totality of all acquired knowledge, experience, skills and health of a person, which he uses in his professional activity. This concept does not at all mean the number of people involved in production, as many people think.

Realizing the importance of this factor, many world scientists decided to understand the basic principles on which the theory of human capital should be based. Many different options were offered, each of which had a right to exist. The modern understanding of the concept of human capital is based on the provisions put forward by Nobel Prize laureate G. Becker. They boil down to the following:

• human capital turns into capital when applying for a job due to the knowledge, skills, creativity, and innovativeness of a person;
• the growth of this factor should be the key to the success of the growth of the company’s main indicators;
• the use of capital properly leads to an increase in the welfare of workers;
• growth in well-being is an incentive to invest money in yourself, in your skills, improving your skills and professionalism, in order to further use them in your work.

Becker emphasized that a purely individual approach is required when choosing an option to improve one’s skills and abilities, so that human capital subsequently pays for itself and contributes to the development of the company and the country as a whole.

Human capital is part of one large developing system, so its development is a natural process. Of course, the person himself must realize the usefulness of his own development in professional, spiritual and other areas of his life. Without the desire to achieve anything, the desire to know oneself and the world, the very idea of ​​development is impossible. An important role in this process is played by motivation and the conditions created for this development. Many firms consider investments in human capital along with investments in high-yielding assets. This mainly means investing in the education and health of its employees. That is, conditions must be created for continuous training in new techniques, techniques, and the opportunity to obtain higher professional education. In addition, measures to maintain and care for the employee’s health help to increase the use of his useful knowledge and skills, which again increases his human capital.