The Utilization-Adjusted Human Capital Index
The World Bank Human Capital Index (HCI) is based on the productivity gains of future workers from human capital accumulation. But in many developing countries, a sizeable fraction of people are not employed, or are in jobs in which they cannot ful...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/630311600204533950/The-Utilization-adjusted-Human-Capital-Index-UHCI http://hdl.handle.net/10986/34487 |
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okr-10986-344872022-09-20T00:09:32Z The Utilization-Adjusted Human Capital Index Pennings, Steven HUMAN CAPITAL LABOR MARKET UTILIZATION EMPLOYMENT HEALTH EDUCATION DEVELOPMENT ACCOUNTING LABOR FORCE PARTICIPATION HCI HUMAN CAPITAL INDEX UHCI The World Bank Human Capital Index (HCI) is based on the productivity gains of future workers from human capital accumulation. But in many developing countries, a sizeable fraction of people are not employed, or are in jobs in which they cannot fully use their skills and cognitive abilities to increase their productivity. The Utilization-adjusted Human Capital Indices (UHCIs) adjust the HCI for labor-market underutilization of human capital, based on fraction of the working age population that are employed, or are in the types of jobs where they might be better able to use their skills and abilities to increase their productivity (“better employment”). The UHCIs generalize the growth-based interpretation of the HCI: the inverse of a country's UHCI score represents long-run GDP per capita with complete human capital and complete utilization, relative to that under the status quo. The UHCIs are designed to complement the HCI, and not to replace it: they have different purposes, and the challenges of measuring utilization mean that the UHCIs should be interpreted with caution for policy analysis. Both utilization measures are available for more than 160 countries, and are roughly U-shaped in per capita income, suggesting human capital is particularly underutilized in middle-income countries. Human capital is also underutilized for women: while the HCI is roughly equal across boys and girls, female UHCIs are typically lower than those for males, driven by lower employment rates. 2020-09-18T14:18:32Z 2020-09-18T14:18:32Z 2020-09 Working Paper http://documents.worldbank.org/curated/en/630311600204533950/The-Utilization-adjusted-Human-Capital-Index-UHCI http://hdl.handle.net/10986/34487 English Policy Research Working Paper;No. 9375 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
HUMAN CAPITAL LABOR MARKET UTILIZATION EMPLOYMENT HEALTH EDUCATION DEVELOPMENT ACCOUNTING LABOR FORCE PARTICIPATION HCI HUMAN CAPITAL INDEX UHCI |
| spellingShingle |
HUMAN CAPITAL LABOR MARKET UTILIZATION EMPLOYMENT HEALTH EDUCATION DEVELOPMENT ACCOUNTING LABOR FORCE PARTICIPATION HCI HUMAN CAPITAL INDEX UHCI Pennings, Steven The Utilization-Adjusted Human Capital Index |
| relation |
Policy Research Working Paper;No. 9375 |
| description |
The World Bank Human Capital Index (HCI)
is based on the productivity gains of future workers from
human capital accumulation. But in many developing
countries, a sizeable fraction of people are not employed,
or are in jobs in which they cannot fully use their skills
and cognitive abilities to increase their productivity. The
Utilization-adjusted Human Capital Indices (UHCIs) adjust
the HCI for labor-market underutilization of human capital,
based on fraction of the working age population that are
employed, or are in the types of jobs where they might be
better able to use their skills and abilities to increase
their productivity (“better employment”). The UHCIs
generalize the growth-based interpretation of the HCI: the
inverse of a country's UHCI score represents long-run
GDP per capita with complete human capital and complete
utilization, relative to that under the status quo. The
UHCIs are designed to complement the HCI, and not to replace
it: they have different purposes, and the challenges of
measuring utilization mean that the UHCIs should be
interpreted with caution for policy analysis. Both
utilization measures are available for more than 160
countries, and are roughly U-shaped in per capita income,
suggesting human capital is particularly underutilized in
middle-income countries. Human capital is also underutilized
for women: while the HCI is roughly equal across boys and
girls, female UHCIs are typically lower than those for
males, driven by lower employment rates. |
| format |
Working Paper |
| author |
Pennings, Steven |
| author_facet |
Pennings, Steven |
| author_sort |
Pennings, Steven |
| title |
The Utilization-Adjusted Human Capital Index |
| title_short |
The Utilization-Adjusted Human Capital Index |
| title_full |
The Utilization-Adjusted Human Capital Index |
| title_fullStr |
The Utilization-Adjusted Human Capital Index |
| title_full_unstemmed |
The Utilization-Adjusted Human Capital Index |
| title_sort |
utilization-adjusted human capital index |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/630311600204533950/The-Utilization-adjusted-Human-Capital-Index-UHCI http://hdl.handle.net/10986/34487 |
| _version_ |
1764481005412941824 |