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Abstract

Subject and purpose of work: Human capital is one of the key drivers of rural economic development. The purpose of this paper was to study the main assets of human capital in rural areas and to evaluate this human capital; to identify development trends and devise the recommendations for increasing the impact of human capital in Ukraine’s rural areas on individual incomes and economic growth. Materials and methods: The research focuses on evaluating the key assets of human capital in the rural areas of Ukraine – educations, health, qualifications, age and the integral evaluation of rural human capital. The data was gathered by random surveys of household living conditions conducted by the State Statistics Committee of Ukraine. Annual surveys cover 10,500 households. Results: Results demonstrate that there were positive dynamics under the education component, while the health component was constantly in decline. The quantitative scoring of assets allowed preparing an integrated evaluation of human capital in rural areas of Ukraine and observing the dynamics of change in years. This indicator had declined before 2008. A decrease in the level of rural human capital in Ukraine started with the activation of large-scale agri-business in the late 1990s. Since 2009, human capital in rural areas has been increasing. The dynamics of human capital development in the rural areas of post- Euromaidan Ukraine demonstrate the specific nature of its capitalisation. Profit per human capital in rural areas depends not on its rate but on the human capital (holder) employment profile. Conclusions: Received evaluations could be used for separation of priority state policy actions for balanced development, quantitative renovation and accumulation of human capital in rural areas.

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