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Human Capital Measurement: A Survey

  • Giuseppe Folloni
  • Giorgio Vittadini

After a short history of the concept of human capital (henceforth HC) in economic thought ( Section 1 ), this study presents the two main methods for estimating the value of the stock of HC - the retrospective and prospective one - with a review of the models proposed ( Section 2 ). These methods are linked both to the theory of HC investment as a rational choice ( Section 3 ), the literature analysing the contribution of HC investment to economic growth and the HC estimating method through educational attainment ( Section 4 ). The more recent literature on HC as a latent variable is also assessed ( Section 5 ) and a new method of estimation where HC is seen both as an unknown function of formative indicators and as a 'latent effect' underlying earned income is proposed ( Section 6 ). Section 7 concludes. Copyright � 2010 Blackwell Publishing Ltd.

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Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

Volume (Year): 24 (2010)
Issue (Month): 2 (04)
Pages: 248-279

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Handle: RePEc:bla:jecsur:v:24:y:2010:i:2:p:248-279
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