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Human Capital Index

From Wikipedia, the free encyclopedia
Annual measurement by the World Bank

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]

Methodology

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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)

History

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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.

List of countries by HCI

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List of countries by Human Capital Index 2020[8]
RankCountry / RegionScore (% of potential reached)
1 Singapore0.88
2Hong Kong0.81
3 Japan0.80
4 South Korea0.80
5 Canada0.80
6 Finland0.80
7Macao0.80
8 Sweden0.80
9 Ireland0.79
10 Netherlands0.79
11 United Kingdom0.78
12 Estonia0.78
13 New Zealand0.78
14 Slovenia0.77
15 Norway0.77
16 Australia0.77
17 Portugal0.77
18 France0.76
19 Belgium0.76
20 Switzerland0.76
21 Cyprus0.76
22 Denmark0.76
23 Poland0.75
24 Czech Republic0.75
25 Germany0.75
26 Austria0.75
27 Iceland0.75
28 Israel0.73
29 Spain0.73
30 Italy0.73
31 Croatia0.71
32 Malta0.71
33 Latvia0.71
34 Lithuania0.71
35 United States0.70
36 Belarus0.70
37 Greece0.69
38 Vietnam0.69
39 Luxembourg0.69
40 Hungary0.68
41 Russia0.68
42 Serbia0.68
43 United Arab Emirates0.67
44 Slovakia0.66
45 China0.65
46 Bahrain0.65
47 Chile0.65
48 Turkey0.65
49 Qatar0.64
50 Albania0.63
51 Montenegro0.63
52 Seychelles0.63
53 Ukraine0.63
54 Costa Rica0.63
55 Kazakhstan0.63
56 Brunei0.63
57 Uzbekistan0.63
58 Mauritius0.62
59 Mongolia0.61
60 Bulgaria0.61
61 Mexico0.61
62 Malaysia0.61
63 Thailand0.61
64 Oman0.61
65 Peru0.61
66 Colombia0.61
67 Trinidad and Tobago0.60
68 Saint Lucia0.60
69 Argentina0.60
70 Uruguay0.60
71 Sri Lanka0.60
72 Kyrgyzstan0.60
73 Antigua and Barbuda0.60
74 Ecuador0.59
75 Iran0.59
76 Palau0.59
77 Saint Kitts and Nevis0.59
78 Romania0.58
79 Moldova0.58
80 Palestine0.58
81 Bosnia and Herzegovina0.58
82 Armenia0.58
83 Azerbaijan0.58
84 Saudi Arabia0.58
85 Georgia0.57
86 Kosovo0.57
87 Grenada0.57
88 Kuwait0.56
89 North Macedonia0.56
90 Jordan0.55
91 Brazil0.55
92 Samoa0.55
93 Kenya0.55
94 El Salvador0.55
95 Dominica0.54
96 Indonesia0.54
97 Jamaica0.53
98 Algeria0.53
99 Saint Vincent and the Grenadines0.53
100 Tonga0.53
101 Paraguay0.53
102 Tunisia0.52
103 Philippines0.52
104 Lebanon0.52
105 Fiji0.51
106 Nauru0.51
107 Nicaragua0.51
108 Federated States of Micronesia0.51
109 Nepal0.50
110 Morocco0.50
111 Tajikistan0.50
112 Dominican Republic0.50
113 Panama0.50
114 Guyana0.50
115 Egypt0.49
116 India0.49
117 Kiribati0.49
118 Cambodia0.49
119 Honduras0.48
120 Myanmar0.48
121 Bhutan0.48
122 Zimbabwe0.47
123 Bangladesh0.46
124 Guatemala0.46
125 Gabon0.46
126 Laos0.46
127 Vanuatu0.45
128 Timor-Leste0.45
129 Ghana0.45
130 Tuvalu0.45
131 Haiti0.45
132 Namibia0.45
133 Togo0.43
134 Papua New Guinea0.43
135 South Africa0.43
136 Marshall Islands0.42
137 Gambia0.42
138 Senegal0.42
139 Solomon Islands0.42
140 Republic of the Congo0.42
141 Botswana0.41
142 Malawi0.41
143 Iraq0.41
144 Pakistan0.41
145 Comoros0.40
146 Lesotho0.40
147 Benin0.40
148 Afghanistan0.40
149 Cameroon0.40
150 Zambia0.40
151 Madagascar0.39
152 Tanzania0.39
153 Burundi0.39
154 Uganda0.38
155 Burkina Faso0.38
156 Ethiopia0.38
157 Mauritania0.38
158 Ivory Coast0.38
159 Rwanda0.38
160 Sudan0.38
161 Yemen0.37
162 Eswatini0.37
163 Guinea0.37
164 Democratic Republic of the Congo0.37
165 Sierra Leone0.36
166 Angola0.36
167 Mozambique0.36
168 Nigeria0.36
169 Liberia0.32
170 Mali0.32
171 South Sudan0.31
172 Chad0.30
173 Niger0.29

See also

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References

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  1. ^Gatti, Roberta (2022-10-15)."Human Capital Project".World Bank.
  2. ^Edwards, Sophie (2019-04-01)."Q&A: World Bank human capital index gathers momentum".Devex.
  3. ^Blinov, Oleksiy; Djankov, Simeon (2022-11-17)."Ukraine's wages and job loss trends during the war".CEPR.
  4. ^Angrist, Noam (2021-03-10)."Measuring human capital using global learning data".Nature.592 (7854).Nature:403–408.Bibcode:2021Natur.592..403A.doi:10.1038/s41586-021-03323-7.PMC 8046667.PMID 33692542.
  5. ^Angrist, Noam; Djankov, Simeon; Goldberg, Pinelopi K.; Patrinos, Harry A. (2019)."Measuring Human Capital".World Bank.doi:10.1596/1813-9450-8742.hdl:10986/31280.
  6. ^Angrist, Noam; Djankov, Simeon; Goldberg, Pinelopi; Patrinos, Harry (2021-04-09)."Measuring human capital: Learning matters more than schooling".CEPR.
  7. ^Kraay, Aart (2018-09-25).Methodology for a World Bank Human Capital Index. Policy Research Working Papers. The World Bank.doi:10.1596/1813-9450-8593.hdl:10986/30466.S2CID 170011611.
  8. ^"Human Capital".World Bank. Retrieved2021-04-20.

External links

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Economic classification of countries
Three/Four-World Model
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Gross national income andIncome
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Human development
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investment position
(NIIP)
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