THE ROLE OF HUMAN CAPITAL IN SOCIAL AND ECONOMIC DEVELOPMENT OF THE REGIONS OF RUSSIA


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Abstract

The paper considers the structure of investments in human capital development: investments in education, health care, culture and social mobility of the population. The author defines the key investors of human capital: the households, the businesspeople, and the state; specifies and describes the role of each of them at different stages of human life. It is proved that the state becomes the single key investor in social development due to the deferred in time benefit from investments in human capital and the low income of population in the conditions of the Russian Federation.

The author carried out the analysis of the human capital role in the social and economic development of regions of Russia, which showed that the maximum benefit from investments in human development could be observed in the regions of Central, Volga and Southern federal districts. It is proved that the outcome of investments in human capital is higher for a household than for regional economy. This fact serves as the explanation of the employer’s unwillingness to invest in the development of the employees. The author carried out the correlation factors calculation that showed the closed relationship between the employee’s social sphere expenses, reached labor productivity, and income.

The study proved that despite the volumes of the investments in the social sphere, the benefit from investments depends considerably on the efficiency of human capital use. The represented statistical data confirm visually the validity of Okun’s law investigating public losses from unemployment. The author determined the smallest per capita index of gross regional product in the regions with high level of unemployment: North Caucasian, Southern and Siberian federal districts. It is proved that the task of the state is not only in the ensuring of investments in human capital development but in the creation of conditions for professional and personal self-realization of a person in the selected sphere of activity as well.

About the authors

Aminat Ruslanovna Kappusheva

Pyatigorsk State Linguistic University, Pyatigorsk

Author for correspondence.
Email: kappusheva.a@bk.ru

postgraduate student of Chair “Economy, Finance and Management”

Russian Federation

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