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DOI: https://doi.org/10.34069/AI/2023.72.12.21
How to Cite:
Melnyk, S., Ravlinko, Z., Bilous, S., Berest, I., & Kokhan, V. (2023). Security of human capital: negative factors, health care,
problems of investment and loss in modern conditions of digitization. Amazonia Investiga, 12(72), 236-245.
https://doi.org/10.34069/AI/2023.72.12.21
Security of human capital: negative factors, health care, problems of
investment and loss in modern conditions of digitization
Seguridad del capital humano: factores negativos, atención médica, problemas de inversión y
pérdidas en las condiciones modernas de digitalización
Received: November 5, 2023 Accepted: December 28, 2023
Written by:
Stepan Melnyk1
https://orcid.org/0000-0003-3782-5973
Zoryana Ravlinko2
https://orcid.org/0000-0001-8380-6912
Sofiia Bilous3
https://orcid.org/0000-0003-3651-6490
Ihor Berest4
https://orcid.org/0000-0001-6141-4678
Vasyl Kokhan5
https://orcid.org/0000-0001-8909-811X
Abstract
The main purpose of the article is to identify key
factors influencing the safety and health of
human capital in open socio-economic systems
in the digital era. To achieve this goal, the task
was determined to carry out factor modeling. The
object of the study is human capital, its security
system and investment in its healthcare. The
research methodology involves the use of
modern modeling methods to prioritize the action
of certain impact factors. As a result of the study,
key factors influencing the health and safety of
human capital in Ukraine were identified. The
innovativeness of the results obtained is revealed
through the presentation of the author's approach
to modeling the ordering of the action of certain
factors. A model for counteracting the negative
influence of these factors is proposed. The study
is limited by not taking into account all possible
influencing factors. Prospects for further
research include covering broader aspects of the
1
Institute of Management, Psychology and Security, Lviv State University of Internal Affairs, Lviv, Ukraine. WoS Researcher ID:
AAI-1425-2020
2
Doctoral student, Lviv State University of Internal Affairs, Lviv, Ukraine. WoS Researcher ID: JNH-1737-2023
3
Faculty of Geography, Ivan Franko National University of Lviv, Lviv, Ukraine. WoS Researcher ID: CEX-3440-2022
4
Department of Information, Library and Archival Affairs, Ukrainian Academy of Printing, Lviv, Ukraine. WoS Researcher ID:
Y-3049-2019
5
National Academy of Ground Forces, Lviv, Ukraine.
Melnyk, S., Ravlinko, Z., Bilous, S., Berest, I., Kokhan, V. / Volume 12 - Issue 72: 236-245 / December, 2023
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topic and taking into account the entire EU
market.
Key words: health care, health security, human,
human capital, security, digitization, main
factors, investments.
Introduction
Health care is a critical component in human
capital development because healthy workers are
more productive, which contributes to economic
growth. Health influences educational
opportunities and work productivity. For
example, healthy children do better in school,
which increases their chances of getting better
jobs in the future. Adults who are physically and
mentally healthy can work more efficiently and
with fewer interruptions, increasing overall
productivity.
Investment in health helps reduce poverty
because healthy individuals can work and earn
money, while illness often leads to financial
hardship. Also, spending on health care is an
investment in the future: it ensures a healthy
society that can actively contribute to the social,
economic and cultural aspects of life. In addition,
treating health as a primary need for human
capital investment helps create the foundation for
long-term development. Ensuring access to
quality health care and healthcare helps improve
quality of life, which is a key element of
sustainable development. Thus, investing in
healthcare does not simply improve individual
health, but also forms the basis for the
development of an effective and productive
society, increasing the overall level of human
capital, which is important for overall socio-
economic development.
Security of human capital means ensuring
conditions that allow people to fully develop,
work and live in a safe environment where their
health, education and well-being are protected.
Health is an important element in this context, as
healthy people are the foundation of a productive
workforce and an innovative society.
Investments in human capital, including health,
education and professional development, are
critical to ensuring its security. Increased
investment in these areas improves the skills,
health and overall well-being of the population,
which in turn leads to increased productivity and
economic sustainability.
Digitalization also plays an important role in
shaping the security of human capital. Digital
technologies can improve access to educational
resources, simplify job search and professional
development, and provide new opportunities for
monitoring and managing population health. For
example, telemedicine and mobile health
monitoring applications allow people to better
monitor their physical condition and receive
timely medical care.
Medicine, in particular, has a direct impact on the
security of human capital. Investments in
medical infrastructure, research and
development of new methods of treating and
preventing diseases help increase life expectancy
and quality of life, reducing health-related risks.
So, the security of human capital is a complex
concept that includes the protection and
development of health, education and
professional development of the individual.
Investments in these areas, along with the
integration of digital technologies, are key to
creating a strong, healthy, educated and
innovative workforce that is the foundation of a
stable and efficient economy.
The main purpose of the article is to identify key
factors influencing the safety and health of
human capital in open socio-economic systems
in the digital era. The object of the study is
human capital, its security system and investment
in its healthcare.
The structure of the article consists of the
following elements: an introduction, including a
structural overview of the selected topic, a
review of scientific sources on the topic, a
description of the research methodology, a
presentation of the main results of the study, a
discussion of the results and conclusions.
Literature review
In the realm of human capital security,
particularly in the context of healthcare,
investment challenges, and the evolving digital
landscape, scholarly research presents a complex
tapestry of interrelated issues and insights. The
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essence of human capital is intricately tied to the
health and well-being of individuals, as explored
in various studies.
Bilan, Mishchuk, & Dzhyhar (2017) study delves
into the core of human capital by examining the
relationship between human capital factors and
remuneration, revealing a critical link between
education, skills, and financial rewards. This
relationship underscores the tangible value of
investing in human capital, where enhanced
skills and education directly impact earnings.
The role of community health workers, as
explored by Olaniran et al., (2019), shifts the
focus to a grassroots level, highlighting how
essential local health initiatives are in bolstering
the health component of human capital,
particularly in maternal and newborn care in
Africa and Asia. This perspective is crucial in
understanding the health care system's reach and
its ability to cater to diverse populations.
In an era dominated by digital information, the
study by Cannito et al., (2020) becomes
particularly relevant. Their research on health
anxiety and attentional bias during the COVID-
19 pandemic illuminates the psychological
impacts of health crises on human capital. The
digital age, with its rampant spread of both
information and misinformation, plays a pivotal
role in shaping public health perceptions and
responses.
The intricate relationship between health care
expenditures and life expectancy, as analyzed by
Heuvel and Olaroiu (2017), points to the
foundational need for financial investment in
healthcare systems. Their findings in the
European context highlight how life expectancy,
a key measure of a nation's health, is deeply
influenced by healthcare spending. Ruger’s
(2007) exploration into global health
governance, with a focus on the World Bank's
role, broadens the lens to a global perspective.
This study is critical in understanding the
international dynamics and policies that shape
national healthcare systems, influencing the
health aspect of human capital on a broader scale.
Furthermore, Holzer (2020) study provides an
interesting intersection between public health
and policing, offering a unique vantage point on
the occupational safety of law enforcement as a
public health issue. This perspective is vital in
comprehending the broader implications of
health and safety in various occupational sectors.
In the context of rural health, Chuke et al., (2023)
study in Southeast Nigeria emphasizes the
challenges faced by rural health workers and the
implications for community and sustainable
development. This research is crucial in
understanding the unique health care challenges
in rural settings, which often lack resources and
infrastructure. Rezapour et al., (2019) analysis of
the effects of health expenditure on health
outcomes through a panel data approach further
adds to the understanding of how investment in
healthcare translates into tangible health
improvements. Their findings are particularly
pertinent in policy-making and strategic planning
for health care systems.
Lastly, Strasser, Kam, & Regalado (2016) review
on rural health care access in developing
countries completes the picture by offering
insights into the challenges and policies needed
to improve health care in less accessible regions.
Collectively, these studies paint a comprehensive
picture of the multifaceted challenges and
considerations in securing human capital,
highlighting the critical role of healthcare, the
impact of digitization, and the importance of
strategic investment in fostering a healthy,
productive population in the modern world. The
imperative for continued research in the area of
human capital security, especially considering
healthcare, investment, and the impact of
digitization, stems from the dynamic and
evolving nature of these fields. While existing
literature provides foundational insights, the
landscape in which human capital exists is
constantly shifting due to various factors. Firstly,
global health challenges are in a state of flux.
New health threats emerge, such as the COVID-
19 pandemic, which not only present immediate
health risks but also have long-term implications
on mental health, societal dynamics, and
economic stability. These evolving challenges
necessitate ongoing research to understand their
impacts comprehensively, develop effective
healthcare strategies, and adapt policies to ensure
the resilience and well-being of human capital.
Methodology
Expert analysis in our context consists of
involving healthcare and human capital
specialists to identify and assess negative factors
affecting these areas. Experts use experience and
knowledge to identify key issues and determine
their impact.
Hierarchical analysis helps to organize the
identified factors according to their importance
or influence. This method allows you to structure
problems from the most important to the least
important, thus contributing to a better
understanding of priorities for solution.
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The graphical modeling method is used to
visually represent the problems found and
possible ways to solve them. This allows the
relationships between different factors to be
clearly depicted and effective strategies to be
developed to counter the negative impacts on
health and human capital development.
Results and discussion
The development of human capital is closely
interconnected with the healthcare system. The
health of individuals has a direct impact on their
productivity and performance. When people are
healthy, they are able to work more effectively,
maintaining a high level of professional activity
and quality of work. In contrast, illness or poor
health can significantly reduce work
productivity. In addition to its direct impact on
the workforce, health status affects educational
opportunities and the quality of learning. This is
especially important in childhood and
adolescence, when chronic illness or ongoing
health problems can interfere with the
educational process, resulting in reduced
educational achievement and potential for future
development.
An effective healthcare system also helps support
workforce longevity, ensuring that people can
remain active and productive in the labor market
for longer. This not only improves the overall
level of well-being in a society, but contributes to
sustainable economic growth, since a healthy
workforce is a key component in the
development of human capital.
Productivity and healthcare are closely linked
because the health of workers has a direct impact
on their ability to perform their jobs effectively.
Healthy workers typically have better
concentration, stamina and the ability to learn
quickly, which are key factors for increased
productivity. In addition, illness can lead to a
decrease in these abilities, an increase in the
number of days lost due to illness, and, as a
result, a decrease in overall work productivity. In
addition, quality health care and preventative
health programs can reduce the risk of chronic
disease, which is important not only for keeping
workers healthy, but also for stability and
increased productivity in the workplace.
Effective health systems that provide rapid
access to treatment and preventive measures help
keep workers in good health, reducing sickness
absence and increasing overall productivity.
Investing in the development and security of
human capital is a multifaceted process that
includes a number of measures and strategies
aimed at improving the health, education and
overall well-being of the population. One of the
key aspects of this investment is strengthening
the health care system.
Strengthening the healthcare system involves
increasing the availability and quality of medical
services. This means not only providing the
population with the necessary medicines and
medical services, but also the development of
healthcare infrastructure: the construction of new
hospitals, the purchase of modern medical
equipment, and the training of qualified medical
personnel. A focus on preventive measures and
raising public awareness about a healthy lifestyle
is also important.
In parallel with health initiatives, investing in
human capital includes improving the education
system. This means not only the creation of new
educational institutions and improving the
quality of education, but also the development of
programs aimed at developing the skills needed
in the modern world, such as digital literacy,
critical thinking, and an innovative approach. In
addition, investing in human capital also involves
creating a safe and healthy working environment.
This includes ensuring a safe working
environment, reducing occupational risks,
raising labor safety standards, and ensuring
social protection for workers.
The benefits of such investments are multiple.
First, they improve productivity because healthy
and well-educated workers are able to perform
their jobs more effectively. Secondly, the burden
on the healthcare system is reduced due to a
decrease in the level of illness and injury in the
workplace. It also promotes social well-being, as
people who feel healthy and happy in their jobs
have higher levels of life satisfaction.
The implications of this holistic approach to
investing in human capital could be significant.
At the macroeconomic level, this can lead to
GDP growth as the overall productivity of the
economy increases. At the social level, there may
be a decrease in poverty and inequality as more
people have access to quality education and
health care. This creates a more stable and
prosperous society where every individual has
the opportunity to realize their potential.
The low share of investment in healthcare in the
structure of investment in human capital
development in Ukraine is explained by several
factors. First, economic constraints play a
significant role. Ukraine has a limited budget and
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faces numerous economic challenges, leading to
competition for limited resources among
different sectors such as education,
infrastructure, defense and healthcare. This may
limit investment in healthcare.
The second factor is the historical legacy and
structural problems in the health care system.
The Ukrainian healthcare system is inherited
from the Soviet era and has shortcomings such as
outdated equipment and insufficient
infrastructure. This requires significant
investment in upgrading and improving the
system.
Political challenges also have an impact on
healthcare investment. Political instability and
changes in government can influence decisions
about the allocation of resources to health care,
as well as the adoption of reforms in this area.
Social aspects include low levels of public
awareness of the importance of investing in
health and insufficient demand for health
services. This may be due to cultural and social
factors influencing the perception of the need to
improve the healthcare system (Fig.1).
Figure 1. The structure of investment in the development of human capital in Ukraine for 2022, %
(Formed by authors)
Based on the results of a survey of experts, we
will highlight the most significant negative
factors affecting the security and development of
human capital in Ukraine:
1. Insufficient investment in healthcare. This
can lead to a deterioration in the general
health of the population, inaccessibility of
health services to all segments of society and
an increase in morbidity and mortality.
2. Digital divide. Unequal access to digital
technology and the internet can create a large
gap between those who have access to digital
resources and those who do not. This limits
educational, work and social development
opportunities for a large part of the
population.
3. Low quality of education. Insufficient
funding, outdated educational programs and
a lack of qualified teachers can lead to low
quality education, limiting the development
of skills and knowledge needed for the
modern labor market.
4. Economic inequality. Large economic
inequalities can lead to social instability,
limit access to basic resources for the poor,
and reduce opportunities for social and
professional development.
5. Political instability and corruption: These
factors can have a serious impact on human
capital development as they lead to poor
management of resources, lack of trust in
government and limited business and
investment opportunities.
Investing in
infrastructure; 24%;
24%
Investing in health
care; 19%; 19%
Investing in
education; 21%; 21%
Investing in security;
14%; 14%
Investing in jobs;
22%; 22%
Investing in infrastructure Investing in health care Investing in education
Investing in security Investing in jobs
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Each factor is assigned a number for the
convenience of subsequent calculations: 1-5. To
perform a hierarchical analysis using the Saati's
Analytic Hierarchy Process (AHP), we need to
follow these steps:
1. Define the Criteria and Comparison: The
criteria here are the five negative factors
affecting human capital development:
Insufficient investment in health care,
Digital divide, Low quality of education,
Economic inequality, Political instability
and corruption.
2. Construct Pairwise Comparison Matrices:
We will compare each factor against each
other in pairs, assigning a scale of
importance from 1 to 9 (where 1 means
equally important, and 9 means extremely
more important).
3. Calculate the Priority Vector: This involves
normalizing the pairwise comparison matrix
and finding the average of each row, which
gives us the priority of each factor.
4. Check for Consistency: We need to ensure
the consistency ratio (CR) is less than 10%
to ensure reasonable judgments.
First of all, let's build a matrix of even
comparisons (Table 1).
Table 1.
The Pairwise Comparison Matrix
1
2
3
4
5
1
1
3
4
2
5
2
1/3
1
2
1/2
3
3
1/4
1/2
1
1/3
2
4
1/2
2
3
1
4
5
1/5
1/3
1/2
1/4
1
(Formed by authors)
To check for consistency, we calculate the
Consistency Index (WI) and the Consistency
Ratio (WR). The formula for WI is (1):
WI=λmax−n/n-1 (1)
Where λmax is the average of the sum of each
column of the pairwise comparison matrix
multiplied by its respective priority vector, and n
is the number of criteria.
The WR is calculated as (2):
WR=WI/RI (2)
Where RI (Random Index) depends on the
number of criteria (for 5 criteria, RI = 1.12).
In our case, Consistency Index (WI): 0.0226;
Consistency Ratio (WR): 2.02%. Since the
Consistency Ratio is 2.02%, which is less than
10%, the judgments made in the pairwise
comparisons can be considered consistent.
Next, we need build normalized pairwise
comparison matrix. This matrix is derived from
the pairwise comparison matrix by normalizing
each column. The priority vector is then obtained
by calculating the average of the rows in the
normalized matrix (table 2).
Table 2.
Normalized Pairwise Comparison Matrix
1
2
3
4
5
1
0.43
0.44
0.39
0.48
0.33
2
0.14
0.15
0.19
0.12
0.2
3
0.11
0.07
0.09
0.08
0.13
4
0.22
0.29
0.28
0.24
0.26
5
0.08
0.05
0.04
0.06
0.06
(Formed by authors)
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Based on the conditional calculation using
Saaty's Analytic Hierarchy Process (AHP), we
have the following results (Priority Vector
(Relative Importance of Each Factor)):
1. Insufficient Investment in Health Care:
41.62%
2. Digital Divide: 16.11%
3. Low Quality of Education: 9.86%
4. Economic Inequality: 26.18%
5. Political Instability and Corruption: 6.24%
As a result of the calculations, it was determined
that the most important and negative factor is the
low volume of investment in health care (Fig.2).
Figure 2. A model for increasing investment in the health care system in the context of strengthening the
security of human capital
(Formed by authors)
These measures can significantly improve the
state of health investment and improve the
quality of health care in the country.
In discussing the health and safety of human
capital, particularly in the Ukrainian context, we
juxtapose our study's findings with various
international perspectives and methodologies.
Our research identified key factors influencing
the health and safety of human capital in Ukraine,
presenting an innovative authorial approach to
modeling and counteracting these influences.
However, it's crucial to note the limitation in not
accounting for all possible influencing factors
and the need for a broader scope in future
research. Morina et al., (2022) examination of the
effect of health expenditure on life expectancy
resonates with our findings, underscoring the
importance of financial investment in healthcare.
However, our study extends this by proposing a
model for counteracting negative influences,
which could be further enriched by incorporating
Morina et al.'s insights on sustainable
development and planning. Podra et al., (2020)
delve into the theoretical aspects of human
capital formation, focusing on migration and
investment processes. This study provides a
broader context for our work, especially in
understanding how human potential migration
and investment contribute to the formation and
safety of human capital. This perspective can be
instrumental in extending our model to include
Increase in State Expenditure on
Health Care
J1/1
Public-Private Partnership
J1/2
Increasing the Efficiency of Using
Existing Resources
J1/3
X(1)
Development of Insurance
Medicine

Investments in Education and
Training of Medical Personnel
J1
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factors related to workforce mobility and its
implications. The comparative study by Palutturi
et al., (2015) on healthy city capacity in
Indonesia and Korea offers a unique lens through
which we can examine our model. Their
approach to assessing health capacity at the urban
level could provide a more granular perspective,
which is particularly relevant given the urban-
centric development of countries like Ukraine.
Gladka and Fedorova (2019) focus on defining
personnel marketing strategies, a dimension not
explicitly covered in our study. Integrating their
insights on personnel strategies could enhance
our model by considering how marketing and
human resource strategies impact human
capital's health and safety. Lee et al., (2020)
update on health promoting schools is
particularly relevant in the context of our study's
focus on youth and educational settings. Their
findings could inform a more nuanced approach
in our model, especially in addressing the
educational sector's role in safeguarding human
capital. The study by Paluttur et al., (2022) on
expert needs for health center development in
South Sulawesi provides insights into healthcare
infrastructure, which is crucial for understanding
the health component of human capital.
Integrating their approach could offer a more
comprehensive view of healthcare system needs
in our model.
Our study's focus on the health and safety of
human capital in Ukraine revealed innovative
approaches to modeling the influence of various
factors. The comparison with the aforementioned
studies highlights the necessity of incorporating
broader aspects, such as health expenditure's
impact, human capital formation through
migration, urban health capacity, personnel
strategies, and health infrastructure development.
These dimensions could greatly enrich our
understanding and provide a more holistic view
of the factors influencing human capital's health
and safety.
Conclusions
The study reveals the key factors influencing the
health and safety of human capital in Ukraine.
These factors, which affect the health system in
different countries, highlight the complex
interaction between various aspects of society
and the economy. Financial constraints are often
at the heart of these challenges, as insufficient
funding can lead to shortages of medical
resources, equipment and trained personnel.
Furthermore, social inequalities and the lack of
universal access to health services can leave a
significant part of the population without
necessary care.
The innovation of the results obtained is revealed
through the presentation of the author's approach
to modeling the influence of certain factors. A
model is proposed to counteract the negative
influence of these factors.
The study is limited by not taking into account all
possible influencing factors. Research on the
security of human capital, its development and
investment in health opens broad perspectives to
create a sustainable, productive and innovative
society. The key aspect here is to understand how
to provide optimal conditions for human
development at all stages of life. This involves
not only ensuring physical health through
medical services, but also creating an
environment conducive to education,
professional growth, and psychological well-
being.
Investing in human capital development and
health can lead to significant increases in
economic productivity. Healthy, educated and
motivated workers can contribute more
effectively to the economy by promoting
technological progress and innovation. On the
other hand, improving working conditions and
ensuring workplace safety can reduce the
incidence of occupational illnesses and injuries,
which, in turn, has a positive impact on overall
work productivity.
The development of digital technologies in
health and education opens new opportunities for
a personalized approach in treatment, training
and professional development. This allows for
more efficient use of resources and ensures that
services are better tailored to individual needs.
Additionally, an emphasis on human capital
security can help create a more equitable society.
The focus on ensuring equal access to education
and health services helps reduce social inequality
and improve overall living standards.
In summary, the prospects for investigating the
security of human capital, investing in its
development and health, promise the creation of
a sustainable, healthy and innovative social
structure capable of adapting to changes in the
global context and the challenges of the future.
As a result of the study, key factors influencing
the health and safety of human capital in Ukraine
were identified. Negative factors affecting the
human capital health system in different
countries exist due to the complex interaction
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between different aspects of society and the
economy. Economic constraints are often at the
core of these challenges, as insufficient funding
can lead to a shortage of medical resources,
equipment and trained personnel. Also, social
inequalities and the lack of universal access to
health services can leave a significant part of the
population without necessary health care.
The innovativeness of the results obtained is
revealed through the presentation of the author's
approach to modeling the ordering of the action
of certain factors. A model for counteracting the
negative influence of these factors is proposed.
The study is limited by not taking into account all
possible influencing factors. Research into the
security of human capital, its development and
investment in health opens up broad prospects for
creating a sustainable, productive and innovative
society. The key aspect here is a deep
understanding of how to provide optimal
conditions for human development at all stages
of his life. This involves not only ensuring
physical health through medical services, but
also creating a favorable environment for
education, professional growth and
psychological well-being.
Investing in human capital development and
health can lead to significant increases in
economic productivity. Healthy, educated and
well-motivated workers are able to contribute
more effectively to the economy by promoting
technological progress and innovation. On the
other hand, improving working conditions and
ensuring workplace safety can reduce the level of
occupational diseases and injuries, which, in
turn, has a positive impact on overall labor
productivity.
The development of digital technologies in
healthcare and education opens up new
opportunities for a personalized approach to
treatment, training and professional
development. This allows for more efficient use
of resources and also ensures that services are
better tailored to the needs of specific
individuals. In addition, an emphasis on human
capital security research can help create a more
equitable society. Focusing on ensuring equal
access to education and health services helps
reduce social inequality, improving overall living
standards.
As a result, the prospects for researching the
security of human capital, investing in its
development and health promise the creation of a
sustainable, healthy and innovative social
structure capable of adapting to changes in the
global context and the challenges of the future.
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Palumbo, R., & Domenico, di A. (2020).
Health anxiety and attentional bias toward
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