Human capital: assessing its impact on incomes of the population in Russian regions

Using Russian regional development statistics and the Cobb-Douglas trinomial production function, the author analyses the links between the human capital and incomes of the population in Russian regions. Using a structural analysis, the author shows that a statistically significant correlation between an average educational level of the employed in regional economy and the incomes of the population of these regions has been observed. The dependant variables in the equations of linear regression are population’s incomes (both gross ones and those per an employee) in 2000, 2003 and 2004; the independent variables are the regional fixed assets, volume of employment and an average educational level. The paper shows that the link between an average educational level and population’s incomes has been significantly observed in densely populated regions such as those located in the European part of Russia.