Institutional Impact on Improvement of Personal Factor of Production

In the article, through the prism of the action of institutions, the questions of improving a personal factor of production are considered. It is provingly argued that an institutional impact on the personal factor of production under the conditions of the Republic of Tajikistan should be based on a creation of sound and acceptable working conditions that can ensure economic security and productive labor reward. Analytical calculations of marginal labor productivity and elasticity of output by labor in the national economy, industry and agriculture have led to the conclusion that industry is the most effective sector for using labor factor. In this regard, the directions of institutional impact on the improvement of the use of personal factors of production providing for coordinated actions of the state, employers, trade unions and workers themselves, are defined: application of competence approach to training labor resources by joint efforts of state, employment services, employers, trade unions and workers themselves; abandonment of the old system of hiring workers in favor of operating with economic indicators of the effectiveness of their involvement (marginal productivity and elasticity of output by factor of production); creation of a national system of labor development at the outfits in the country; gradual development of constituent elements of human capital in personal factors of production (abilities, knowledge, skills, education, culture,  stock of vitality, health, qualification).