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Human Capital Assessment Methodology

Author

Listed:
  • Yurii Safonov

    (State Scientific Institution "Institute of Education Content Modernization", Ukraine)

  • Viktoriia Borshch

    (Odessa National Medical University, Ukraine)

  • Mykhailo Danylko

    (Higher Educational Institution "Academician Yuriy Bugay International Scientific and Technical University", Ukraine)

Abstract

The main purpose of the paper is to analyse the existing methods and procedures of estimation of human capital as a dominant factor in improving profitability and competitiveness of the enterprise. The main tasks of the paper are to study and analyse the concept of human capital and its characteristics, to systematise approaches and methods of estimation of human capital within the framework of the company and the national economy. Methodology. This study analyses the theoretical basis of the estimation of human capital at different levels. The method used is literature review. Findings. The article raises the problem of using human capital as one of the indicators of efficient development of the economy. The analysis of the methodology of estimation of human capital is carried out. The article considers current methods of estimation of human capital at different levels: micro-, meso-, macro-, as well as their comparative analysis. The characteristics of the basic approaches to the estimation of human capital are considered, the analysis of the problems of indirect methods of estimation of human capital, objectivity and sufficiency of data for the construction of estimates is carried out. External factors such as socio-psychological resources, environmental influences, human lifestyles, such as dietary intake, need to be taken into account in order to estimate human capital accurately. Each approach has its own strengths and weaknesses. The weaknesses are more related to the difficulties in quantifying some of the components of human capital and the difficulties in collecting, processing and statistically analysing information at all levels of the study. Each approach has its own strengths and weaknesses. The weaknesses are more related to the difficulties of quantifying some components of human capital, and the difficulties of collecting, processing and statistically analysing information at all levels of the study. The authors also found that the investment approach is the most popular and provides the most adequate estimates. Practical implications. The results of this study provide a methodological basis for improving the methodology of estimating the value of human capital. The analysed approaches can be used at different levels of the national economy (macro-, meso- and micro-) by different organisational structures for further management decisions.

Suggested Citation

  • Yurii Safonov & Viktoriia Borshch & Mykhailo Danylko, 2023. "Human Capital Assessment Methodology," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 9(3).
    • Handle: RePEc:bal:journl:2256-0742:2023:9:3:20
    DOI: 10.30525/2256-0742/2023-9-3-179-184
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    References listed on IDEAS

    as
    1. Maria Rosa Trovato, 2020. "Human Capital Approach in the Economic Assessment of Interventions for the Reduction of Seismic Vulnerability in Historic Centres," Sustainability, MDPI, vol. 12(19), pages 1-33, September.
    2. Annamaria Di Bartolo, 1999. "Modern Human Capital Analysis: Estimation of US, Canada and Italy Earning Functions," LIS Working papers 212, LIS Cross-National Data Center in Luxembourg.
    3. Graham, John W & Webb, Roy H, 1979. "Stocks and Depreciation of Human Capital: New Evidence from a Present-Value Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(2), pages 209-224, June.
    4. John W. Graham & Roy H. Webb, 1979. "Stocks And Depreciation Of Human Capital: New Evidence From A Present‐Value Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(2), pages 209-224, June.
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    More about this item

    Keywords

    human capital; method; assessment; national economy; labour;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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