: 11-21
Lviv Politechnic National University
Lviv Polytechnic National University
Ivan Franko National University of Lviv, Department of International economic and Investment Activity

Purpose. The purpose of this article is to improve theoretical, methodological, and applied foundations of the study of the educational component of human potential.

Design/methodology/approach. Scientific works of domestic and foreign scientists studying issues related to human potential, labor market, and education financing, as well as official statistical data that characterize these issues, formed the information, theoretical, and methodological basis of the study. To achieve this purpose, the article uses a set of scientific methods that have ensured conceptual integrity of the study, in particular: the method of theoretical generalization and the abstract method were used to systematize scientific results and formulate conclusions; the method of structural analysis was used to study education costs in terms of individual components; concentration and differentiation analysis was used to study distribution of costs of financial agents; dynamic modeling was used to build trends in the number of educational institutions, the number of students, and the total cost of education; the tabular method was used for a compact representation of quantitative indicators; the graphical method was used to visualize the results of the study, etc.

Findings. The functioning of the country's education system has a decisive influence on the quality of human potential. Graduates who complete a higher education program are more likely to work in knowledgeintensive jobs and earn higher salaries. Workers with higher education are usually more likely to be formally employed and less likely to lose their jobs. Effectiveness of the education system depends on its financing. The results of the analysis of data on expenditures on education in Ukraine indicate the following patterns: most funds are allocated for educational services provided by higher education institutions, for the first stage of secondary education and primary education; private firms and corporations most often allocate their funds for post-secondary education; the share of state institutions among financial agents carrying out activities in the field of education reaches about 90 %; the maximum costs of the public sector are observed at the ISCED 0-3 educational levels; the network of institutions and the contingent of students receiving vocational, technical, and higher education are decreasing; there is a declining trend in the level of education expenditures in the Consolidated Budget expenditures. The rise in the price of educational services against the background of an unbalanced labor market leads to a loss of knowledge; additional retraining expenses; increase in social benefits.

Practical implications. The materials presented in the article can be useful to representatives of institutions and scientists whose activities are related to the financing of education and the labor market.

Originality/value. In the article, the author. The level of education of an employee is considered as one of the components of their potential. This component allows an employee to compete successfully in the labor market. In Ukraine, financial resources of the population cover more than 30 % of doctoral studies and their equivalents, as well as about 25 % of expenditures cover higher education. Given the spread of poverty and the weakening of state support for higher education, Ukrainians will face the problem of the provision of financial support for universities. 

1. Novikova, O. F., Amosha, O. I., Antonyuk, V. P. and others (2012). Sustainable development of the industrial region: social aspects: a collective monograph. Donetsk: Institute of Industrial Economics of the National Academy of Sciences of Ukraine, 534 р.
2. Stefanyshyn, O. V. (2012). Human potential of Ukraine's economy: monograph. Lviv: LNU Publishing Center named after Ivan Franko, 315 р.
3. Zhuk, O. P., Drozdovska, L. O. (2019). Educational component in the process of forming the human potential of the national economy. Scientific Bulletin of Kherson State University. Series: Economic Sciences, 35, pp. 3-18.
4. Andreytseva, I. A. (2020). Labor potential of Ukraine: analysis of the educational component. Young Scientist, 8, pp. 249-256. Retrieved from:
5. Osipenko, K. V. (2019). Human potential as a factor in the formation of sustainable urban development. Urban planning and spatial planning, 70, pp. 431-437. 
6. Tomchuk, O. V. (2019). Theoretical and methodological approaches to determining the content and structure of human potential of the territory. Bulletin of Economic Science of Ukraine, 2, pp. 121-136.
7. Hrynkevych, O., Sorochak, O. (2021). Priorities of increasing the competitiveness of higher education in regional development management (case of Ukraine). Journal of Lviv Polytechnic National University. Series of Economics and Management, 5(1), pp. 144-157. Retrieved from:
8. Halkiv, L., Karyy, O., Kulyniak, I., Kis, Y., Tsapulych, A. (2021). The national system of higher education and government procurement for its services as activators of the development of IT entrepreneurship. CEUR Workshop Proceedings, 2870, pp. 1338-1349. Retrieved from: s2.0-85107189998&origin=resultslist
9. Hrynkevych, O., Sorochak, O., Panukhnyk О., Popadynets N., Bilyk, R., Khymych I., Yazina, V. (2020). Competitiveness of higher education system as a sector of economy: Conceptual model of analysis with application to Ukraine. Advances in Intelligent Systems and Computing. AISC, 1131, pp. 439-445. Retrieved from:
10. Bespalyuk, Kh., Protsak, K. (2021). Design thinking as an effective method of adaptation to change. Journal of Lviv Polytechnic National University. Series of Economics and Management, 5 (1), pp. 121-131. Retrieved from:
11. Skoda, T. N. (2011). The relationship between human and intellectual potential. Problems of improving the efficiency of infrastructure: a collection of scientific papers, 29. Retrieved from:
12. Lisogor, L. S., Nesterenko, V. V. (2020). Formation and realization of labor potential of regions and communities as a basis for ensuring their sustainable development. Economics and organization of management, 2, pp. 20-30. Retrieved from:
13. Stepura, T. M. (2021). Development of human potential in the conditions of qualification of economy of Ukraine: the dissertation of doctor. econ. Science: 08.00.07. Vinnitsa. 608 s.
14. Education at a Glance, 2020: Indicators. OECD website. URL:
15. Education pay soff, but you have to be patient, 2020. ILO: website. URL:
16. Economic activity of the population of Ukraine 2018: statistical collection. State Statistics Service of Ukraine: website. URL:
17. Arntz, M., Gregory, T. & Zierahn, U. (2016). The risk of automation for jobs in OECD countries: A comparative analysis. OECD Social, Employment and Migration Working Papers. 189, pp. 1-34 Retrieved from:
18. The State Statistics Service of Ukraine. (2021). Statistical information. Education. Retrieved from:
19. Londar, L. P. (2020). Features of financing educational services in the conditions of modern challenges. Education reform in Ukraine. Information and analytical support: collection of abstracts of the II International scientific-practical conference on October 15, 2020, pp. 39-42.
20. Ministry of Education and Science of Ukraine. Information on the calculation of the amount of the educational subvention. URL:
21. State Treasury Service of Ukraine. Reporting. URL:
22. Zubchyk, O. A. (2014). Quality higher education: formation of human capital and increasing the competitiveness of the state. Bulletin of Taras Shevchenko National University of Kyiv. Governance, 1, pp. 25-28.
23. Barbosa-Camargo, M. I., Castiblanco-Moreno, S. E, Medina-Arboleda, I. F. (2020). Textual statistical analysis of higher education policy financing: evidence from member countries of the Organization for Economic Cooperation and Development (OECD). Formación universitaria, pp. 169-180.