Does the Russian economy need human capital? 10 doubts

Abstract

Positive impact of human capital on economic growth seems to be undisputable but its magnitude depends on to what extent high quality education and skills are demanded and valued by the labour market. This essay argues that lack of demand for human capital cannot be cured by growing supply if other things remain intact. The author formulates 10 doubts concerning human capital absorption in the Russian economy. The doubts, supported by statistical and anecdotal evidence, relate to low quality of the Russian institutional environment which limits demand for labour and distorts its structure.