Human capital management in the context of an aging population

Rūta Čiutienė, Rasa Railaite

Abstract


Purpose. The main purpose of the paper is to analyze the features of human capital management in the context of population’s aging. The emphasis is paid to the theoretical bases of human capital, linking them with the changes of current demographic indicators and their influence to economics’ development.

Methodology. The study is based on the scientific literature analysis, structuring and evaluation methods that are used in researching specificities of human capital. This type of analysis allows providing systematic approach to a particular issue.

Results. The following aspects as globalization, social and demographic changes, development of knowledge economy play an important role in our day’s life.  Changes in these areas affect various types of organizations, their functioning and also the whole countries' economic development. The authors of scientific literature unanimously agree that human capital plays an important role in the theory of economic growth.  Nevertheless such aspects as population aging have a huge impact on human capital formation and evaluation processes. In the context of an aging society, organizations face with new challenges in human resources management area: skilled labor shortages, difficulties in ensuring the knowledge transferring, multi-generational workforce management difficulties, etc.

View of the fact, the first section of the paper briefly discusses the concept of human capital, analyzes how this term varies through time and what new items are included in this concept. The second part of the article discusses the investment in human capital and focuses to the role of human capital and its influence to the country’s’ economic. According to Bloom, Canning and Fink (2011), one of the main factors affecting an economic development is associated with the human life cycle. It has been observed that countries with larger working age population (compering with other counties that have a greater part of older population) have higher labor supply and experience a faster economic growth. Taking it into account, the article discusses what economic differences are noticeable by comparing demographically younger and older European countries. Thus, the analysis of these aspects allow look into human resource management from the perspective of an aging population.

The theoretical contribution. Prepared analysis allows combining three dimensions, which are analyzed in in the scientific literature: human capital, economic growth and population aging. Theoretical analysis provides structured insights that allow complementing the existing studies.

Keywords: human resources, human capital management, population aging, economic growth.

Paper type: Theoretical paper.

 


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