Methodology for a World Bank Human Capital Index
This paper describes the methodology for a new World Bank Human Capital Index (HCI). The HCI combines indicators of health and education into a measure of the human capital that a child born today can expect to obtain by her 18th birthday, given th...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/300071537907028892/Methodology-for-a-World-Bank-Human-Capital-Index http://hdl.handle.net/10986/30466 |
| Summary: | This paper describes the methodology for
a new World Bank Human Capital Index (HCI). The HCI combines
indicators of health and education into a measure of the
human capital that a child born today can expect to obtain
by her 18th birthday, given the risks of poor education and
health that prevail in the country where she lives. The HCI
is measured in units of productivity relative to a benchmark
of complete education and full health, and ranges from 0 to
1. A value of x on the HCI indicates that a child born today
can expect to be only x x100 percent as productive as a
future worker as she would be if she enjoyed complete
education and full health. The methodology of the HCI is
anchored in the extensive literature on development accounting. |
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