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Education as a Factor in the Formation of Human Capital and Economic Growth
Riadynska I. A.

Riadynska, Iryna A. (2022) “Education as a Factor in the Formation of Human Capital and Economic Growth.” Business Inform 3:33–37.
https://doi.org/10.32983/2222-4459-2022-3-33-37

Section: Education and Science

UDC 37.017:[331.5+330.35]

Abstract:
The main purpose of thе presented article is to outline the role of the education system in the formation of human capital, the development of which is a prerequisite for the economic growth of the country. The article carries out a study of the theory of human capital as a defining component that ensures the process of development and accumulation of human capital, on which, in turn, the competitiveness of the country and its place in the world environment depend. The importance of educational resources in the creation of human capital is disclosed. The role of investments in human capital, and, in particular, in the educational process, is revealed. The relationship between the level of education and the employee’s salary is characterized. The main directions of influence of human education on the economic growth of the country are distinguished. The article specifies some recommendations that will ensure guarantees of the preservation of the education sector as a factor in the formation of high-quality human capital of the country. Education is defined as a fundamental form of investment in human capital. Lifelong education provides conditions for the formation of a qualified young worker as an individual and a professional in the chosen direction of training and further work at any enterprise. The main task of education is to provide the country with high-quality human capital for effective economic growth. Education has a positive influence on the labor market not only because it increases the competitiveness of workers, but because it accumulates potentially unoccupied young people. It is emphasized that the development of education and training contributes to solving such important tasks of socioeconomic development as accelerating the pace of economic growth, mitigating inequality in the distribution of incomes, improving the quality of the national labor force, directly reducing unemployment and preventing it in the future.

Keywords: higher education, human capital, labor market, economic growth, government spending, wages.

Fig.: 1. Bibl.: 11.

Riadynska Iryna A. – Candidate of Sciences (Pedagogy), Associate Professor, Associate Professor, Department of Socio-Economic Disciplines and Geography, H.S. Skovoroda Kharkiv National Pedagogical University (29 Alchevskykh Str., Kharkіv, 61002, Ukraine)
Email: [email protected]

List of references in article

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