TheHuman Capital Index (HCI) is an annual measurement prepared by theWorld Bank.[1] HCI measures which countries are best in mobilizing theirhuman capital, the economic and professional potential of their citizens. The index measures how much capital each country loses through lack of education and health. The index ranges between 0 and 1, with 1 meaning maximum potential is reached.[2] HCI is used in country studies of employment and wages, for example in Ukraine afterRussia's invasion.[3]
The applications to measuring human capital were developed in research by Noam Angrist,Simeon Djankov,Pinelopi Koujianou Goldberg, and Harry Patrinos in the scientific journalNature.[4][5] These findings were popularized in a 2021 article.[6] HCI is grounded on the following three pillars:[7]
Survival
Percentage of children surviving past the age of 5
School
Quantity of education (Expected years of schooling by age 18)
Quality of education (Harmonized test scores)
Health
Adult survival rates (Percentage of 15-year-olds who survive until age 60)
Healthy growth among children (Stunting rates of children under 5)
The Human Capital Index was first published as part of theWorld Bank'sWorld Development Report 2019, directed bySimeon Djankov and World Bank chief economist Federica Saliola (https://live.worldbank.org/en/experts/f/federica-saliola).Nobel Prize winnerPaul Romer started the measurement.