Home – Home – Jornals – Region: Economics and Sociology 2019 number 3

Human capital, on the one hand, contributes to the acceleration of the country’s economic development, its scientific and technological progress. On the other hand, the socio-economic characteristics of regions affect the level of return on human capital. The authors propose a hypothesis that the higher the volume of accumulated human capital in the region, the stronger its impact on the level of personal income. This hypothesis determined the purpose of the study: to evaluate the relationship between the level of human capital accumulation, fixed (physical) capital and personal income in groups of Russian regions. As for methods, the authors use the cost-based approach combined with the method of calculating the replacement value of education assets for the Russian population employed in the economy. The results obtained confirmed that the increased spending on education in the long run is more profitable than raising investment in fixed assets, especially in regions with low economic development and specializing in agriculture. Following the calculations, the authors conclude that the human capital accumulated in the regional economy enables a rise in personal incomes more than physical capital.