Methodology for a World Bank Human Capital Index

59 Pages Posted: 26 Sep 2018 Last revised: 27 Sep 2018

See all articles by Aart Kraay

Aart Kraay

World Bank - Development Research Group (DECRG)

Date Written: September 25, 2018

Abstract

This paper describes the methodology for a new World Bank Human Capital Index (HCI). The HCI combines indicators of health and education into a measure of the human capital that a child born today can expect to obtain by her 18th birthday, given the risks of poor education and health that prevail in the country where she lives. The HCI is measured in units of productivity relative to a benchmark of complete education and full health, and ranges from 0 to 1. A value of x on the HCI indicates that a child born today can expect to be only x x100 percent as productive as a future worker as she would be if she enjoyed complete education and full health. The methodology of the HCI is anchored in the extensive literature on development accounting.

Keywords: Health Care Services Industry, Educational Sciences, Early Child and Children's Health, Nutrition, Reproductive Health, Education For All, Educational Populations, Education for Development (superceded), Law and Justice Institutions

Suggested Citation

Kraay, Aart, Methodology for a World Bank Human Capital Index (September 25, 2018). World Bank Policy Research Working Paper No. 8593. Available at SSRN: https://ssrn.com/abstract=3255311

Aart Kraay (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

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Washington, DC 20433
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HOME PAGE: http://econ.worldbank.org/staff/akraay

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