THE CURRENT STATE OF HUMAN CAPITAL DEVELOPMENT IN RURAL AREAS OF UKRAINE

Keywords: rural areas, human capital, components of human capital, labor potential, labor force

Abstract

In this study, human capital is considered as a generalized number of existing characteristics of human resources in urban and rural areas. The object of human capital of certain territories is a set of characteristics of human resources of these territories. We assessed these characteristics by 5 components: demographic, social, economic, cultural, educational and labor potential. Studying the demographic component of human capital in rural and urban areas during the period of Ukraine's independence, the following structural changes should be noted: 1) Decrease in population: in urban areas by 5.6 million or 16.2%, in rural areas – by 4.2 million or 24.7%. 2) Increase in the share of the population in urban areas by 3.3%. 3) Decrease in the share of the population under 14 years of age: in urban areas by 7.2%, in rural areas by 4%. 4) Increase in the share of the population over 65 years of age: in urban areas by 7.4%, in rural areas – by 0.6%. 5) Excess of the share of women: in urban areas by 8.4%, in rural areas – by 5%. The analysis of the social component of human capital shows that in rural areas over the past 30 years the number of people of retirement age has decreased by 45%, while the share of such persons in the total population decreased by 8%. In urban areas, during the same period, the number of retirees increased by 36% and their share – by 24%. The economic component of human capital shows the dynamics of gradual growth. Thus, the real average wage has increased by 38% over the last 10 years, while the average monthly income per capita has increased by only 6%. The component of labor potential of human capital over the past 10 years is characterized by a disproportionate reduction in labor and population: in urban areas the reduction in labor was 20% and the population only – 8%, while in rural areas the reduction in labor was – 23%, and the population – 12%. Analysis of the cultural and educational component shows that over the past 30 years there has been a significant decrease in both the number of educational institutions in Ukraine and the number of their students, except for the number of universities (+ 43%) and their students (+ 143%). Such trends correlate with the rate of population decline and the transformation of Ukraine's economy. At the same time, the most negative in the country's education is a catastrophic decrease in the number of colleges, technical schools and colleges (-81%) and their students (-78%). In general, according to the analysis of all components, human capital as a rural and urban area is in satisfactory condition, and without further socio-economic changes confirmed by the relevant institutional framework, destructive processes will intensify, leading to depopulation of rural areas and lower quality components of human resources. capital of urban areas.

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Published
2022-04-26
How to Cite
Pyvovar, P., & Pyvovar, A. (2022). THE CURRENT STATE OF HUMAN CAPITAL DEVELOPMENT IN RURAL AREAS OF UKRAINE. Economy and Society, (38). https://doi.org/10.32782/2524-0072/2022-38-13
Section
ECONOMICS