Interaction of social institutions in the process of human capital formation

Modern economic development supposes refocusing from stocking material resources to forming and developing human capital. Taking into the consideration the importance of qualified human resources for economic development, a socio-economic approach has to be the tool to study human capital formation. Now there is a vital problem of how to improve the quality of human capital. The qualitative change of the human role in the postindustrial society makes economists interested in human capital reproduction. Genesis of scientific ideas and views is characterized with the variety of approaches. There is still no definition of this notion. It is useless to talk about human capital as a combination of skills, abilities, motivations without dynamic development. This dynamics and change of human capital is emphasized in its definition, because it includes not only formed but also constantly developing store of health, knowledge, habits and skills as a result of investments. The socio-economic approach supposes studying the interaction of human capital formation areas and finding features of their inter-influence. The quality of human capital depends on a successful interaction of social institutions. In particular, important institutions responsible for the quality of human capital are family, culture, health and education. A special importance in storing human capital belongs to education. The quality of education is becoming a principal factor defining the effectiveness of a worker, payment level, i.e. the quality of his/her human capital. In modern times there has been a change in the quality evaluation of a specialist. In past they were evaluated according to their qualification including technological knowledge and skills within their profession, now it is about their competence and ability to solve all the issues while at work. The interrogational socioeconomic approach to identification of human capital allows us to define it as the capital of a special kind embodied into the personality of its carrier and being a combination of health, skills, abilities and other qualities of a person who develops his/her professional competences due to constant lifelong education. In modern times human capital formation processes are supposed to be manageable. An effective state tool of this kind can be a combinational interaction of social institutions.

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