Human Capital Index

The Human Capital Index (HCI) is an annual measurement prepared by the World Bank.[1] HCI measures which countries are best in mobilizing their human 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 after Russia's invasion.[3]

Methodology

The applications to measuring human capital were developed in research by Noam Angrist, Simeon Djankov, Pinelopi Koujianou Goldberg, and Harry Patrinos in the scientific journal Nature.[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

The Human Capital Index was first published as part of the World Bank's World Development Report 2019, directed by Simeon Djankov and World Bank chief economist Federica Saliola (https://live.worldbank.org/en/experts/f/federica-saliola

). Nobel Prize winner Paul Romer started the measurement.

List of countries by HCI

List of countries by Human Capital Index 2020[8]
Rank Country / Region Score (% of potential reached)
1  Singapore 0.88
2  Hong Kong 0.81
3  Japan 0.80
4  South Korea 0.80
5  Canada 0.80
6  Finland 0.80
7  Macao 0.80
8  Sweden 0.80
9  Ireland 0.79
10  Netherlands 0.79
11  United Kingdom 0.78
12  Estonia 0.78
13  New Zealand 0.78
14  Slovenia 0.77
15  Norway 0.77
16  Australia 0.77
17  Portugal 0.77
18  France 0.76
19  Belgium 0.76
20  Switzerland 0.76
21  Cyprus 0.76
22  Denmark 0.76
23  Poland 0.75
24  Czech Republic 0.75
25  Germany 0.75
26  Austria 0.75
27  Iceland 0.75
28  Israel 0.73
29  Spain 0.73
30  Italy 0.73
31  Croatia 0.71
32  Malta 0.71
33  Latvia 0.71
34  Lithuania 0.71
35  United States 0.70
36  Belarus 0.70
37  Greece 0.69
38  Vietnam 0.69
39  Luxembourg 0.69
40  Hungary 0.68
41  Russia 0.68
42  Serbia 0.68
43  United Arab Emirates 0.67
44  Slovakia 0.66
45  China 0.65
46  Bahrain 0.65
47  Chile 0.65
48  Turkey 0.65
49  Qatar 0.64
50  Albania 0.63
51  Montenegro 0.63
52  Seychelles 0.63
53  Ukraine 0.63
54  Costa Rica 0.63
55  Kazakhstan 0.63
56  Brunei 0.63
57  Uzbekistan 0.63
58  Mauritius 0.62
59  Mongolia 0.61
60  Bulgaria 0.61
61  Mexico 0.61
62  Malaysia 0.61
63  Thailand 0.61
64  Oman 0.61
65  Peru 0.61
66  Colombia 0.61
67  Trinidad and Tobago 0.60
68  Saint Lucia 0.60
69  Argentina 0.60
70  Uruguay 0.60
71  Sri Lanka 0.60
72  Kyrgyzstan 0.60
73  Antigua and Barbuda 0.60
74  Ecuador 0.59
75  Iran 0.59
76  Palau 0.59
77  Saint Kitts and Nevis 0.59
78  Romania 0.58
79  Moldova 0.58
80  Palestine 0.58
81  Bosnia and Herzegovina 0.58
82  Armenia 0.58
83  Azerbaijan 0.58
84  Saudi Arabia 0.58
85  Georgia 0.57
86  Kosovo 0.57
87  Grenada 0.57
88  Kuwait 0.56
89  North Macedonia 0.56
90  Jordan 0.55
91  Brazil 0.55
92  Samoa 0.55
93  Kenya 0.55
94  El Salvador 0.55
95  Dominica 0.54
96  Indonesia 0.54
97  Jamaica 0.53
98  Algeria 0.53
99  Saint Vincent and the Grenadines 0.53
100  Tonga 0.53
101  Paraguay 0.53
102  Tunisia 0.52
103  Philippines 0.52
104  Lebanon 0.52
105  Fiji 0.51
106  Nauru 0.51
107  Nicaragua 0.51
108  Federated States of Micronesia 0.51
109  Nepal 0.50
110  Morocco 0.50
111  Tajikistan 0.50
112  Dominican Republic 0.50
113  Panama 0.50
114  Guyana 0.50
115  Egypt 0.49
116  India 0.49
117  Kiribati 0.49
118  Cambodia 0.49
119  Honduras 0.48
120  Myanmar 0.48
121  Bhutan 0.48
122  Zimbabwe 0.47
123  Bangladesh 0.46
124  Guatemala 0.46
125  Gabon 0.46
126  Laos 0.46
127  Vanuatu 0.45
128  Timor-Leste 0.45
129  Ghana 0.45
130  Tuvalu 0.45
131  Haiti 0.45
132  Namibia 0.45
133  Togo 0.43
134  Papua New Guinea 0.43
135  South Africa 0.43
136  Marshall Islands 0.42
137  Gambia 0.42
138  Senegal 0.42
139  Solomon Islands 0.42
140  Republic of the Congo 0.42
141  Botswana 0.41
142  Malawi 0.41
143  Iraq 0.41
144  Pakistan 0.41
145  Comoros 0.40
146  Lesotho 0.40
147  Benin 0.40
148  Afghanistan 0.40
149  Cameroon 0.40
150  Zambia 0.40
151  Madagascar 0.39
152  Tanzania 0.39
153  Burundi 0.39
154  Uganda 0.38
155  Burkina Faso 0.38
156  Ethiopia 0.38
157  Mauritania 0.38
158  Ivory Coast 0.38
159  Rwanda 0.38
160  Sudan 0.38
161  Yemen 0.37
162  Eswatini 0.37
163  Guinea 0.37
164  Democratic Republic of the Congo 0.37
165  Sierra Leone 0.36
166  Angola 0.36
167  Mozambique 0.36
168  Nigeria 0.36
169  Liberia 0.32
170  Mali 0.32
171  South Sudan 0.31
172  Chad 0.30
173  Niger 0.29

See also

References

  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. 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.
  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. Retrieved 2021-04-20.

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