Genesis of the Human Capital Theory: From Classical Foundations to the Challenges of the Digital Era
Year: 2025
Type: article
Abstract: The article examines the comprehensive evolution of human capital theory from foundational classical political economy ideas to contemporary advanced concepts within the context of digital transformation, wartime realities, and Ukraine's strategic European integration process. Key developmental stages of human capital theory are systematically analyzed, starting from ancient philosophers Plato and Aristotle, through classical school economists William Petty and Adam Smith, to modern approaches of neoclassical, institutional, and post-industrial academic schools. Critical gaps in assessing invisible capital components including creativity, stress resistance, adaptability, emotional intelligence, and significant methodological challenges of adapting established theory to artificial intelligence impact on labor relations and employment structure transformation are identified and thoroughly examined. The author provides detailed analysis of leading scholars' contributions to conceptual development, including Theodore Schultz's fundamental works on investment nature of human capital, Gary Becker's sophisticated microeconomic model, Douglas North's institutional approaches, and contemporary research by Ukrainian scientists Oksana Grishnova, Olena Kosenko, and others. Special emphasis is placed on transformation of human capital understanding within knowledge economy conditions, comprehensive digitalization processes, global challenges, and critical necessity of transitioning from traditional qualifications to competencies and soft skills paradigm. An original integral assessment model for Ukrainian human capital is proposed, accounting for specific losses through qualified workforce migration, critical digitalization requirements, European education and professional training standards, and psychological consequences of military conflict. The model incorporates six interconnected components with scientifically substantiated weight coefficients: education, health, digital skills, adaptability, inclusivity, and sustainable development dimensions. The strategic role of human capital as a key national competitiveness factor under global challenges and critical necessity of forming comprehensive lifelong learning ecosystems is substantiated through empirical evidence. Priority directions for further scientific research are determined, including development of innovative invisible capital assessment methodologies, comprehensive investigation of artificial intelligence impact on professional competencies transformation, and creation of scientifically grounded crisis management strategies for human capital preservation during military conflicts and post-war reconstruction periods.
Source: Economics and Management
Author: Serhii Duha
Language: English
Topic: Labor Market and Education
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4413203762