‘Human capital’, ‘human potential’ and labor law: The experience of an interdisciplinary approach

Abstract

The article gives the author’s analysis of the variety of approaches to the concept of “human capital”, which has developed within the framework of economic science. Its positive characteristics, the possibility of using it to solve the problems of theory and practice related to labor law are noted. At the same time, the conventionality of this term, its ambiguity, and insufficient adaptation to legal realities are criticized. The concept of “human potential”, its greater objectivity and correlation with empirical data, is assessed more positively. To confirm the author’s position, the views on this issue of scientists-economists, both foreign (primarily G. Becker) and domestic, are considered. The article proposes the author’s version of the relationship between the concepts of “human capital” and “human potential”. The first refers to social spending or “investment in people” of budgetary funds at all levels and household funds. This funding is aimed at the development of education, obtaining professional skills, knowledge, skills, maintenance of employees during the period of disability, social support for families, housing, medical care, cultural development. This formulation of the question allows us to talk about the return on investment of “human capital”, i. e. of the ratio of investments and subsequent income (negative, neutral or positive). It will still remain a metaphor (and the equivalence of investments and the return on them will always be relative), but not completely divorced from life. “Human potential”, respectively, is considered as the potential ability of a person to realize himself, to participate in the economic life of society. It includes talent, moral and business qualities, education, professional knowledge, skills and abilities, as well as work experience, health status. This potential is not measured in rubles or another currency, but “human capital” is invested in it, relative to which the return is calculated. At the same time, doubts were expressed about the need to introduce “human capital” into the doctrine of labor law.