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Human capital allocation in the transitional economies of Ukraine and Russia


Oleksandr, Zhylyevskyy (2002). Human capital allocation in the transitional economies of Ukraine and Russia. Master's thesis / Doctoral dissertation.


On the micro level, human capital theory provides many valuable insights into individual behavior regarding education, occupation, mobility, and health. On the macro level, it facilitates understanding of growth patterns across countries. Given the key theoretical and practical role of human capital concept, in this study I apply the basic framework developed by Becker
([1964] 1993a), Mincer (1958 and 1974) and others to Ukraine and Russia. Modifying the methodology of Mulligan and Sala-i-Martin (1995a) and Bils and Klenow (2000a), I construct a feasible index of human capital stock per capita. On the basis of the State Committee of Statistics of Ukraine Household Survey and the Russia Longitudinal Monitoring Survey data sets, I calculate a series of values of the index to determine and compare the allocation of human capital by sector of employment, economic status, and gender in 2000. I find that in both countries education and science sectors have the highest human capital stock per capita and trade sector has the lowest one. Entrepreneurs and self-employed are relatively less skilled than the employees, a pattern similar to that of developing economies. The unemployed are the least skilled and women, in most cases, have slightly higher human capital stock per capita than men.


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Oleksandr, Zhylyevskyy