| Abstract: |
Economic science considers human capital as a fundamental factor that
stimulates the accumulation of productive capital and, accordingly, has a
positive effect on economic growth. Improving labor force quality can lead to
an increase in the well-being of an individual due to an increase in his labor
cost. An increase in public welfare will affect the economic growth of the
state as a whole. The above conditions the relevance and timeliness of this
work, aimed at illustration of human capital concept (subject of the study),
as well as determination of human capital place in theoretical economic growth
models and empirical mechanisms of its influence on growth. A review of
theoretical works analyzing human capital concept and its relationship with
economic growth rates aimed at achieving this goal. The study was conducted at
the IPEI Center for the Study of Central Banking Problems as part of the
RANEPA state task for 2022 using relevant academic literature and as the major
source of information and methods such as descriptive, statistical,
comparative analysis, as well as systematic approach. Analysis of human
capital concept allows concluding that this indicator represents a set of
innate and acquired through investment knowledge, skills and practical skills
that determine labor productivity and future income of an employee. The
mechanisms of human capital impact on economic growth include the relationship
between growth and education level, the impact of human capital on
technological progress, the relationship between health indicators and
economic growth rates, the growth effect of public spending on education and
health, and, finally, the effect of human capital in terms of poverty
reduction. In the future, this review can serve as a starting point for an
empirical study of investments in human capital in Russia within the framework
of models with uncertainty and individual heterogeneous discounting. |
| Keywords: |
human capital, economic growth, technological progress, macroeconomic models, education level, public health, government spending, poverty |