Thursday, 27 August 2020

Measurement of Human Capital.....


The World Economic Forum has annually published its Global Human Capital Report, which includes the Global Human Capital Index (GHCI).....

 

In the 2017 edition, 130 countries are ranked from 0 (worst) to 100 (best) according to the quality of their investments in human capital. Norway is at the top, with 77.12.
 

World Bank Human Capital Index


In October 2018, the World Bank published the Human Capital Index (HCI) as a measurement of economic success. The Index ranks countries according to how much is invested in education and health care for young people. The World Bank's 2019 World Development Report on The Changing Nature of Work showcases the Index and explains its importance given the impact of technology on labor markets and the future of work.

Human Capital Index ranking (top 50 countries)

     Singapore 0.88
     South Korea 0.84
     Japan 0.84
     Hong Kong, SAR of China 0.82
     Finland 0.81
     Ireland 0.81
     Australia 0.80
     Sweden 0.80
     Netherlands 0.80
     Canada 0.80
     Germany 0.79
     Austria 0.79
     Slovenia 0.79
     Czech Republic 0.78
     United Kingdom 0.78
     Portugal 0.78
     Denmark 0.77
     Norway 0.77
     Italy 0.77
      Switzerland 0.77
     New Zealand 0.77
     France 0.76
     Israel 0.76
     United States 0.76
     Macau, SAR of China 0.76
     Belgium 0.76
     Serbia 0.76
     Cyprus 0.75
     Estonia 0.75
     Poland 0.75
     Kazakhstan 0.75
     Spain 0.74
     Iceland 0.74
     Russia 0.73
     Latvia 0.72
     Croatia 0.72
     Lithuania 0.71
     Hungary 0.70
     Malta 0.70
     Slovakia 0.69
     Luxembourg 0.69
     Greece 0.68
     Seychelles 0.68
     Bulgaria 0.68
     Chile 0.67
     China 0.67
     Bahrain 0.67
     Vietnam 0.67
     United Arab Emirates 0.66
     Ukraine 0.65

Other methods

A new measure of expected human capital calculated for 195 countries from 1990 to 2016 and defined for each birth cohort as the expected years lived from age 20 to 64 years and adjusted for educational attainment, learning or education quality, and functional health status was published by The Lancet in September 2018. Finland had the highest level of expected human capital: 28·4 health, education, and learning-adjusted expected years lived between age 20 and 64 years. Niger had the lowest at less than 1·6 years.

Measuring the human capital index of individual firms is also possible: a survey is made on issues like training or compensation, and a value between 0 (worst) and 100 (best) is obtained. Enterprises which rank high are shown to add value to shareholders.

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