The Impact of Key Components of Human Potential and Their Combinations on the Wage Levels of Russian Workers

This article analyzes the state of key components of Russian workers’ human potential–general human capital (as defined by G. Becker) and physiological resources (health status) – using data from the RLMS-HSE 2023 survey. Using established operationalization methods for these key components, the study demonstrates that both physiological resources, which include objective health characteristics, and general human capital, defined as a combination of education duration and acquired skills, have varying significance across professional groups. For manual workers, physiological resources differentiate hourly wages more than indicators of human capital. In contrast, for employees in non-physical occupations, wages primarily vary depending on their level of general human capital rather than health status. The higher a group’s position in the professional hierarchy and the greater the qualification requirements for its members, the more pronounced this pattern becomes. The study also finds that regardless of professional affiliation, a low level of both key components of human potential corresponds to the lowest hourly wage. However, having at least an average level in either component significantly increases wages. In other words, good health can, on average, compensate for low qualifications in most professional groups, and vice versa.