HUMAN CAPITAL AS A FACTOR OF ECONOMIC DEVELOPMENT

Abstract

The article is devoted to the analysis of the role of human capital in ensuring sustainable economic development. The starting point of the study was the understanding of human capital as a key factor that determines labor productivity, internal innovative activity, and the ability to implement technological innovations through technology transfer. The role of human capital is revealed through the contours of direct economic impact, as well as broader social and environmental effects that ensure an increase in the quality of life and sustainable development of society. Externalities of human capital development are highlighted. Among them: improved health, increased life expectancy, reduced crime and inequality, civic activity and democratic nature of society, increased environmental awareness, transformation of attitudes towards the rational use of natural resources and support of ecosystems. One of the central aspects of the study was the impact of human capital on economic growth. The article considers theoretical models that describe the impact of human capital on economic growth, in particular exogenous and endogenous models. Particular attention is paid in the work to modifications of classical models that include human capital. In particular, the R. Solow model, modified to take into account human capital, allowed us to consider the impact of investment in education on labor productivity and economic growth. Various approaches to measuring human capital through proxy indicators, such as education spending, the average level of education of the population and other indices, are considered. Attention is paid to studies that show that human capital accounts for a significant part of the difference in per capita income in different countries. An important part of the article is the consideration of the gender aspect in the context of the impact of education on economic growth. Studies have shown that investment in women's education contributes to a decrease in fertility and demographic changes, which, in turn, has a positive effect on economic growth. Women with higher education usually postpone having children, have fewer children and provide them with better education. This demographic transition contributes to the growth of the economically active population and reduces dependence on child labor.