FACTORS LIMITING INVESTMENT IN HUMAN CAPITAL IN MACEDONIA

Abstract

There is a strong link among investments in human capital, economic growth and human development. Since human capital (improvements in the quality of human labour) is embodied technical progress in labour (knowledge and skills), the economic development depends on advances in technological and scientific knowledge, economic development depends on the investments in human capital. The first part of the paper outlines the two key concepts related to investment in human capital - the basic economic concept and the human development concept. The second part is related to the limitations regarding the investment in human capital in Macedonia, expressed through four major dimensions: 1) poverty and inequality; 2) economic policy; 3) absence of a clear link between economic growth (GDP per capita) and human quality of life (HDI) and 4) the access of individuals to the capital market and to information.Investment in human capital; Human development; Economic growth and development; Economic policy.