Human capital research in Ukraine: theoretical principles and applied aspects

Abstract

Introduction. In the past, the wealth of a country was measured in gold and silver. Later, wealth started including means of production. Nowadays, the national wealth of a country includes three main components: natural capital, productive assets and human resources. The purpose of this paper is to highlight historical aspects of assessing the wealth of countries, identify its most important components in the modern world, and analyze of the interests of young people in Ukraine in learning. Results. The concept and composition of national wealth has undergone revision and transformation from the 18th century to the present day. Over time, in addition to gold, silver and means of production, human capital was added to its composition. Rich countries have a high share of produced and intangible assets compared to natural resources. The features of capital that are relevant to human capital, in contrast to human potential, are the ability to accumulate and generate income. For the emergence, as well as the productive functioning of human capital, it is necessary to create appropriate conditions. It is important to achieve a certain standard of living, have support of the state and non-state institutions, make available of modern and progressive knowledge and its effective transfer to the object of educational process, and create conditions for the preservation and development of human capital. Low wages in Ukraine are a primary cause of poverty. Since most European countries have a better standard of living and quality of life, many Ukrainians consider migration to be the only and the most reliable way to improve their lives. During 2015–2019, the share of young people who do not work, study or acquire professional skills amounted to about one sixth of the population aged 15–24. Conclusion. Lack of education and/or high skills of a worker does not affect the level of wages in the cross-country comparison, thus Ukrainian youth loses motivation to learn. The territorial proximity of some regions of our country to Hungary, Poland, Slovakia and Romania and higher wages there create favorable conditions for labor migration of young people. This situation stresses the need for appropriate measures at the state level.