Human Capital Index

Last updated

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]

Contents

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

School

Health

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]
RankCountry / RegionScore (% of potential reached)
1Flag of Singapore.svg  Singapore 0.88
2Flag of Hong Kong.svg  Hong Kong 0.81
3Flag of Japan.svg  Japan 0.80
4Flag of South Korea.svg  South Korea 0.80
5Flag of Canada (Pantone).svg  Canada 0.80
6Flag of Finland.svg  Finland 0.80
7Flag of Macau.svg  Macao 0.80
8Flag of Sweden.svg  Sweden 0.80
9Flag of Ireland.svg  Ireland 0.79
10Flag of the Netherlands.svg  Netherlands 0.79
11Flag of the United Kingdom.svg  United Kingdom 0.78
12Flag of Estonia.svg  Estonia 0.78
13Flag of New Zealand.svg  New Zealand 0.78
14Flag of Slovenia.svg  Slovenia 0.77
15Flag of Norway.svg  Norway 0.77
16Flag of Australia (converted).svg  Australia 0.77
17Flag of Portugal.svg  Portugal 0.77
18Flag of France.svg  France 0.76
19Flag of Belgium (civil).svg  Belgium 0.76
20Flag of Switzerland (Pantone).svg  Switzerland 0.76
21Flag of Cyprus.svg  Cyprus 0.76
22Flag of Denmark.svg  Denmark 0.76
23Flag of Poland.svg  Poland 0.75
24Flag of the Czech Republic.svg  Czech Republic 0.75
25Flag of Germany.svg  Germany 0.75
26Flag of Austria.svg  Austria 0.75
27Flag of Iceland.svg  Iceland 0.75
28Flag of Israel.svg  Israel 0.73
29Flag of Spain.svg  Spain 0.73
30Flag of Italy.svg  Italy 0.73
31Flag of Croatia.svg  Croatia 0.71
32Flag of Malta.svg  Malta 0.71
33Flag of Latvia.svg  Latvia 0.71
34Flag of Lithuania.svg  Lithuania 0.71
35Flag of the United States (23px).png  United States 0.70
36Flag of Belarus.svg  Belarus 0.70
37Flag of Greece.svg  Greece 0.69
38Flag of Vietnam.svg  Vietnam 0.69
39Flag of Luxembourg.svg  Luxembourg 0.69
40Flag of Hungary.svg  Hungary 0.68
41Flag of Russia.svg  Russia 0.68
42Flag of Serbia.svg  Serbia 0.68
43Flag of the United Arab Emirates.svg  United Arab Emirates 0.67
44Flag of Slovakia.svg  Slovakia 0.66
45Flag of the People's Republic of China.svg  China 0.65
46Flag of Bahrain.svg  Bahrain 0.65
47Flag of Chile.svg  Chile 0.65
48Flag of Turkey.svg  Turkey 0.65
49Flag of Qatar.svg  Qatar 0.64
50Flag of Albania.svg  Albania 0.63
51Flag of Montenegro.svg  Montenegro 0.63
52Flag of Seychelles.svg  Seychelles 0.63
53Flag of Ukraine.svg  Ukraine 0.63
54Flag of Costa Rica.svg  Costa Rica 0.63
55Flag of Kazakhstan.svg  Kazakhstan 0.63
56Flag of Brunei.svg  Brunei 0.63
57Flag of Uzbekistan.svg  Uzbekistan 0.63
58Flag of Mauritius.svg  Mauritius 0.62
59Flag of Mongolia.svg  Mongolia 0.61
60Flag of Bulgaria.svg  Bulgaria 0.61
61Flag of Mexico.svg  Mexico 0.61
62Flag of Malaysia 23px.svg  Malaysia 0.61
63Flag of Thailand.svg  Thailand 0.61
64Flag of Oman.svg  Oman 0.61
65Flag of Peru.svg  Peru 0.61
66Flag of Colombia.svg  Colombia 0.61
67Flag of Trinidad and Tobago.svg  Trinidad and Tobago 0.60
68Flag of Saint Lucia.svg  Saint Lucia 0.60
69Flag of Argentina.svg  Argentina 0.60
70Flag of Uruguay.svg  Uruguay 0.60
71Flag of Sri Lanka.svg  Sri Lanka 0.60
72Flag of Kyrgyzstan.svg  Kyrgyzstan 0.60
73Flag of Antigua and Barbuda.svg  Antigua and Barbuda 0.60
74Flag of Ecuador.svg  Ecuador 0.59
75Flag of Iran.svg  Iran 0.59
76Flag of Palau.svg  Palau 0.59
77Flag of Saint Kitts and Nevis.svg  Saint Kitts and Nevis 0.59
78Flag of Romania.svg  Romania 0.58
79Flag of Moldova.svg  Moldova 0.58
80Flag of Palestine.svg  Palestine 0.58
81Flag of Bosnia and Herzegovina.svg  Bosnia and Herzegovina 0.58
82Flag of Armenia.svg  Armenia 0.58
83Flag of Azerbaijan.svg  Azerbaijan 0.58
84Flag of Saudi Arabia.svg  Saudi Arabia 0.58
85Flag of Georgia.svg  Georgia 0.57
86Flag of Kosovo.svg  Kosovo 0.57
87Flag of Grenada.svg  Grenada 0.57
88Flag of Kuwait.svg  Kuwait 0.56
89Flag of North Macedonia.svg  North Macedonia 0.56
90Flag of Jordan.svg  Jordan 0.55
91Flag of Brazil.svg  Brazil 0.55
92Flag of Samoa.svg  Samoa 0.55
93Flag of Kenya.svg  Kenya 0.55
94Flag of El Salvador.svg  El Salvador 0.55
95Flag of Dominica.svg  Dominica 0.54
96Flag of Indonesia.svg  Indonesia 0.54
97Flag of Jamaica.svg  Jamaica 0.53
98Flag of Algeria.svg  Algeria 0.53
99Flag of Saint Vincent and the Grenadines.svg  Saint Vincent and the Grenadines 0.53
100Flag of Tonga.svg  Tonga 0.53
101Flag of Paraguay.svg  Paraguay 0.53
102Flag of Tunisia.svg  Tunisia 0.52
103Flag of the Philippines.svg  Philippines 0.52
104Flag of Lebanon.svg  Lebanon 0.52
105Flag of Fiji.svg  Fiji 0.51
106Flag of Nauru.svg  Nauru 0.51
107Flag of Nicaragua.svg  Nicaragua 0.51
108Flag of the Federated States of Micronesia.svg  Federated States of Micronesia 0.51
109Flag of Nepal.svg  Nepal 0.50
110Flag of Morocco.svg  Morocco 0.50
111Flag of Tajikistan.svg  Tajikistan 0.50
112Flag of the Dominican Republic.svg  Dominican Republic 0.50
113Flag of Panama.svg  Panama 0.50
114Flag of Guyana.svg  Guyana 0.50
115Flag of Egypt.svg  Egypt 0.49
116Flag of India.svg  India 0.49
117Flag of Kiribati.svg  Kiribati 0.49
118Flag of Cambodia.svg  Cambodia 0.49
119Flag of Honduras (2022-).svg  Honduras 0.48
120Flag of Myanmar.svg  Myanmar 0.48
121Flag of Bhutan.svg  Bhutan 0.48
122Flag of Zimbabwe.svg  Zimbabwe 0.47
123Flag of Bangladesh.svg  Bangladesh 0.46
124Flag of Guatemala.svg  Guatemala 0.46
125Flag of Gabon.svg  Gabon 0.46
126Flag of Laos.svg  Laos 0.46
127Flag of Vanuatu.svg  Vanuatu 0.45
128Flag of East Timor.svg  Timor-Leste 0.45
129Flag of Ghana.svg  Ghana 0.45
130Flag of Tuvalu.svg  Tuvalu 0.45
131Flag of Haiti.svg  Haiti 0.45
132Flag of Namibia.svg  Namibia 0.45
133Flag of Togo (3-2).svg  Togo 0.43
134Flag of Papua New Guinea.svg  Papua New Guinea 0.43
135Flag of South Africa.svg  South Africa 0.43
136Flag of the Marshall Islands.svg  Marshall Islands 0.42
137Flag of The Gambia.svg  Gambia 0.42
138Flag of Senegal.svg  Senegal 0.42
139Flag of the Solomon Islands.svg  Solomon Islands 0.42
140Flag of the Republic of the Congo.svg  Republic of the Congo 0.42
141Flag of Botswana.svg  Botswana 0.41
142Flag of Malawi.svg  Malawi 0.41
143Flag of Iraq.svg  Iraq 0.41
144Flag of Pakistan.svg  Pakistan 0.41
145Flag of the Comoros.svg  Comoros 0.40
146Flag of Lesotho.svg  Lesotho 0.40
147Flag of Benin.svg  Benin 0.40
148Flag of the Taliban.svg  Afghanistan 0.40
149Flag of Cameroon.svg  Cameroon 0.40
150Flag of Zambia.svg  Zambia 0.40
151Flag of Madagascar.svg  Madagascar 0.39
152Flag of Tanzania.svg  Tanzania 0.39
153Flag of Burundi.svg  Burundi 0.39
154Flag of Uganda.svg  Uganda 0.38
155Flag of Burkina Faso.svg  Burkina Faso 0.38
156Flag of Ethiopia.svg  Ethiopia 0.38
157Flag of Mauritania.svg  Mauritania 0.38
158Flag of Cote d'Ivoire.svg  Ivory Coast 0.38
159Flag of Rwanda.svg  Rwanda 0.38
160Flag of Sudan.svg  Sudan 0.38
161Flag of Yemen.svg  Yemen 0.37
162Flag of Eswatini.svg  Eswatini 0.37
163Flag of Guinea.svg  Guinea 0.37
164Flag of the Democratic Republic of the Congo.svg  Democratic Republic of the Congo 0.37
165Flag of Sierra Leone.svg  Sierra Leone 0.36
166Flag of Angola.svg  Angola 0.36
167Flag of Mozambique.svg  Mozambique 0.36
168Flag of Nigeria.svg  Nigeria 0.36
169Flag of Liberia 23px.svg  Liberia 0.32
170Flag of Mali.svg  Mali 0.32
171Flag of South Sudan.svg  South Sudan 0.31
172Flag of Chad.svg  Chad 0.30
173Flag of Niger.svg  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.