Human capital: analysis of methodical approaches to formation and reproduction

The concept of «human capital» is based on two independent theories - the theory of investment in human capital and the theory of production of human capital. It is noted that at the early stages of their formation, the practical effect of the concept was manifested in the form of increasing and consolidating the amount of knowledge acquired. However, recent research suggests that the quality of education is crucial for the formation of human capital. Increased knowledge leads to higher wages, increased citizen participation in public life, and reduced crime. Overall, all of this creates a kind of focus for assessing the relative effectiveness of public investment in education programs. The limitations of the theory of human capital are revealed, according to which the acquired knowledge, experience of activity and value attitudes increase the level of labor activity and productivity of employees, thereby causing an increase in individual wages. It was noted that in the structure of human capital there are no mechanisms that allow transferring the personal and business qualities of an employee to higher remuneration for his work.