Concept of human capital evaluation

The evidence of ongoing globalisation processes increases the value of human capital as the most essential factor of public economy; thus offering priority to human capital, consisting of knowledge, abilities and skills, against material or financial resources. Recently accumulation of non-material assets (scientific achievements, the increasing level of education) is gaining priority. The accumulated human capital is an important factor of the individual’s income and employment-related perspectives. Investment in higher education, as the basic form of human capital, offers both personal and public benefits. Within modern economy environment investment in human capital is increasing. At the state level human capital effects economic growth, increases advantageous national competitiveness. The article presents the development of human capital within the theory of economic thought. Human capital developed from the perspective of both the individual‘s living costs necessary for ensuring his living and working conditions, and the statements that human capital is a self-investment by acquiring and accumulating new knowledge and skills and thus establishing a new value added both from the individual and public perspective. The results of investigation have shown that stages of evolution of the concept of human capital and contents are distinguished within the context of the world economy development. The concept of human capital has finally formed in the sixties-seventies of the 20th century. Education is a factor of the modern knowledge economy development which enhances economic growth due to the increase in labour productivity, faster assimilation of technological changes (new technologies). In the country where major investment in human capital is made growth intensity of the gross domestic product (GPD) increases.