Human and social capital formation in the course of parenting: similarities and differences of the process, costs and results

The article describes the approach to the family as an institution performing an important function for the country’s socio-economic development, the formation of human and social capital of the younger generation in the process of parenting. The study’s novelty arises from the fact that social capital is for the fi time considered as the individual’s capital which is formed in the process of parental labor. The authors summarize the existing points of view on the correlation of these types of capital among themselves. As a result of the theoretical analysis the similarities and diff es of human and social type of the person’s capital are revealed. The similarities include the direction of the use of the two capital types, the change in their value under the infl e of certain factors, renewability and the ability to accumulate. The diff es between the human and social types of capital are recorded in the sphere of their manifestation, forms of existence and measurement possibilities. It is shown that family’s contribution in human capital formation of child’s personality is in the process of implementation of its socializing functions, and the formation of child’s social capital in the family takes place through the realization of its educational function and the function of social control. The authors substantiate that the formation of human and social capital in the family occurs due to investment in it. The structure of parents’ costs for the formation of child’s human capital includes parents’ direct material and labor costs, and the costs for social capital include parents’ labor and indirect material costs. The authors highlight the eff of various kinds of parents’ investments in the children’s human and social capital which exist at the level of the family, labor organization and society as a whole. It is proved that some eff obviously result from investments in human capital and indirectly result from investments in social capital, and vice-versa.