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Measuring Human Capital in Europe and Central Asia

Author

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  • Demirguc-Kunt,Asli
  • Torre,Ivan

Abstract

This paper outlines an extension of the Human Capital Index that addresses the specificchallenges in education and health faced by countries in Europe and Central Asia. Good basic education will not beenough, as job markets today demand higher levels of human capital than in the past. As the region’s population becomesolder, it is important that adults remain healthy to ensure productive aging. The Europe and Central Asia Human CapitalIndex (ECA-HCI) extends the Human Capital Index by adding a measure of quality-adjusted years of higher education to theoriginal education component, and it includes the prevalence of three adult health risk factors -- obesity, smoking, andheavy drinking -- as an additional proxy for latent health status. This extension of the Human Capital Index could alsobe useful for assessing the state of human capital in middle-income countries in general.

Suggested Citation

  • Demirguc-Kunt,Asli & Torre,Ivan, 2020. "Measuring Human Capital in Europe and Central Asia," Policy Research Working Paper Series 9458, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9458
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    Keywords

    Educational Sciences; Health Care Services Industry; Tertiary Education; Primary Education; Disease Control & Prevention;
    All these keywords.

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