Peculiarities of human capital formation in rural households
DOI:
https://doi.org/10.51599/is.2024.08.02.08Keywords:
human capital, investment in human capital, rural areas, households, household income, quality of life.Abstract
Purpose. The aim of the study is to assess the peculiarities of human capital formation in rural areas in terms of food consumption, education and healthcare services depending on the level of household income.
Results. The problem of human capital is one of the most important in economic science. The formation of human capital is a process that covers all spheres of modern life. It is associated with the complex development of a person, the formation of his/her personality, the possibility of self-realisation and creativity. One of the problems of Ukraine in general and rural areas in particular is the rapid loss of human capital in recent decades. The study, based on the data of the State Statistics Service of Ukraine on the survey of household living conditions (the analysed population was 3,052 households), established the impact of the amount of cash income of households in rural areas on the level of consumption of food and certain services. The results obtained make it possible to establish a clear correlation between the level of income and the quality of food consumption. In the group with the lowest income level, the level of expenditure on meat per household was UAH 3303, while in the group with an annual income of more than UAH 240 thousand, it was UAH 15494. Similar trends were also recorded for expenditures on milk, butter, and fruit. It was determined that the share of expenditures on food in the group of households with an income of up to UAH 40 thousand was 63.0 %, in the group with an income of UAH 100–120 thousand – 34.5 %, in the group with an income of more than UAH 240 thousand – 22.8 %. There are also significant differences in the level of expenditures on education and healthcare depending on the amount of households’ cash income. The resulting regression model shows that, on average, an increase in the level of income by UAH 10 thousand leads to a decrease in the share of food expenditures in total expenditures by 0.61 %.
Scientific novelty. The definition of the peculiarities of the formation of human capital of households in rural areas has been further developed. On the basis of statistical processing of mass data, the actual impact of the level of household income on the peculiarities of forming the quality of human capital in rural areas is established.
Practical value. Based on the study, it is concluded that one of the central problems of rural development in the post-war period will be the creation of conditions for the return of economically active population and providing them with appropriate opportunities for self-realisation. Otherwise, the negative trends that have been forming over the past decades will not only not be overcome, but will become even more acute and will move to those that could fundamentally worsen the situation with human capital formation.
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