The Effects of Education on Economic Growth in the Russian Federation

Abstract

Thesis discusses the theory of human capital and the strong interdependence between economic growth and human investments. The essence of human capital concept lies in the fact that investments in education and healthcare create the human capital in the same way as expenses on the equipment and materials create physical capital. The rate of return of human investments, in the long run, is much higher than of investments into physical capital. The theory of human capital is applied in the comparative analysis of Federal Subjects of the Russian Federation with the purpose to determine interrelation between the level of education and economic development of the country with the focus on the level of education, differences in income level and vocational and professional structure of the labor.