When we talk about human capital, we talk about the knowledge, skills, health, and
resilience that people acquire over their lives and are crucial for unlocking their
future capacity. The Human Capital Index (HCI) is a measure of the human capital
that a child born today can expect to attain by age 18, given the risks of poor health
and poor education that prevail in the country where she lives (Kraay, 2019). The
Human Capital Index (HCI) is an international metric used to measure the essential
human capital components across countries. The HCI shows how the next generation
of workers’ productivity will be influenced by current health and education
conditions. The concept of human capital differs in the literature, but most
emphasize higher earnings and product development in terms of economic returns.
However, investing in human capital has several other non-economic advantages.
(e.g., Improved health situation, enhanced social well-being, and greater social
cohesion). Many areas crucial as, if not more important than, the economic benefits.
Measuring human capital can serve numerous purposes, e.g., to better understand
what drives economic growth, assess the long-term sustainability of a country’s
growth direction, and evaluate the education sector’s performance and
competitiveness. Also, recent ‘beyond GDP’ discussions have contributed to growing
attention to human capital improvement across individuals and households, and the
non-monetary benefits stem from it.
Many researchers and organizations have taken action, based on a range of
