• Agenda
  • Initiatives
  • Reports
  • Events
  • About
    • Our Mission
    • Leadership and Governance
    • Our Members and Partners
    • Communities
    • History
    • Klaus Schwab
    • Media
    • Contact Us
    • Careers
    • World Economic Forum USA
    • Privacy and Terms of Use
  • EN ES FR 日本語 中文
  • Login to TopLink

We use cookies to improve your experience on our website. By using our website you consent to all cookies in accordance with our updated Cookie Notice.

I accept
    Hamburger
  • World Economic Forum Logo
  • Agenda
  • Initiatives
  • Reports
  • Events
  • About
  • TopLink
  • Search Cancel

Report Home

  • Data Explorer
  • Shareable Infographics
  • User’s Guide
  • [ — Divider — ]
  • Preface
  • Key Findings
  • Global Human Capital Report 2017
    • Underlying concepts
    • Subindexes
    • Index Construction
    • Results
    • Results by Region
      • East Asia and the Pacific
      • Eastern Europe and Central Asia
      • Latin America and the Caribbean
      • Middle East and North Africa
      • North America
      • South Asia
      • Sub-Saharan Africa
      • Western Europe
      • Box 1: G20
      • Box 2: European Union
    • Results by Income Group
    • Results by Subindex
    • Thematic Analysis
      • Capacity
      • Deployment
      • Development
      • Know-how
    • Conclusion
    • References
    • Appendices
      • A: Regional and Income Group Classifications, 2017
      • B: Technical Notes
  • Download full publication as PDF
  • Press Release
  • Blog and opinion
  • [ — Divider — ]
  • System Initiative
  • System Initiative Partners
  • About the authors
  • Acknowledgements
  • Related Forum reports and activities
Human Capital Report 2017 Home
  • Report Home
  • Data Explorer
  • Shareable Infographics
  • User’s Guide
  • [ — Divider — ]
  • Preface
  • Key Findings
  • Global Human Capital Report 2017
    • Underlying concepts
    • Subindexes
    • Index Construction
    • Results
    • Results by Region
      • East Asia and the Pacific
      • Eastern Europe and Central Asia
      • Latin America and the Caribbean
      • Middle East and North Africa
      • North America
      • South Asia
      • Sub-Saharan Africa
      • Western Europe
      • Box 1: G20
      • Box 2: European Union
    • Results by Income Group
    • Results by Subindex
    • Thematic Analysis
      • Capacity
      • Deployment
      • Development
      • Know-how
    • Conclusion
    • References
    • Appendices
      • A: Regional and Income Group Classifications, 2017
      • B: Technical Notes
  • Download full publication as PDF
  • Press Release
  • Blog and opinion
  • [ — Divider — ]
  • System Initiative
  • System Initiative Partners
  • About the authors
  • Acknowledgements
  • Related Forum reports and activities

Underlying concepts

Share

There are four guiding concepts underlying the revised Index, forming the basis of how indicators were chosen, how the data is treated and the scale used. For a description of how these concepts are captured by the choice of indicators and construction techniques used in the creation of the Index, please refer to the sections below.

Outcomes vs. inputs

The Global Human Capital Index evaluates countries based on outcomes rather than inputs or means. Our aim is to provide a snapshot of a country’s current human capital, current investment in building future human capital and current outcomes in the labour market.

Distance to the ideal

The Index holds all countries to the same standard, measuring countries’ “distance to the ideal” state, or gap in human capital optimization. To arrive at this score the Index examines each indicator in relation to a meaningful maximum value that represents “the ideal.” Every indicator’s score is a function of the country’s “distance from the ideal” for the specific dimension measured. By establishing an absolute measure of countries’ performance, the Global Human Capital Index allows for both intra- and inter-country comparisons year-to-year.

Human capital as a dynamic concept

By “human capital” we mean not individuals themselves but the knowledge and skills they possess that enable them to create value in the global economic system.2 This requires investment both on the side of individuals and by public and private stakeholders across people’s lifetimes. The Index thus treats human capital as a dynamic rather than fixed concept. It recognizes that human capital is not defined solely through formal education and skilling but can be enhanced over time—growing through use and depreciating through lack of use.

Demographics count

Whenever possible and relevant, the Index aims to take a generational view and disaggregates indicators according to five distinct age groups, highlighting issues that are unique or particularly crucial for the human capital development of each cohort. This view across age groups allows for more targeted policy interventions and human resource planning.3 

2
2 Ibid.
3
3 Cuaresma, J.C. and T. Mishra, “The role of age-structured education data for economic growth forecasts”, Journal of Forecasting, vol. 30, issue 2, 2011, pp. 249–267.
Back to Top
Subscribe for updates
A weekly update of what’s on the Global Agenda
Follow Us
About
Our Mission
Leadership and Governance
Our Members and Partners
The Fourth Industrial Revolution
Centre for the Fourth Industrial Revolution
Communities
History
Klaus Schwab
Our Impact
Media
Pictures
A Global Platform for Geostrategic Collaboration
Careers
Open Forum
Contact Us
Mapping Global Transformations
Code of Conduct
World Economic Forum LLC
Sustainability
World Economic Forum Privacy Policy
Media
News
Accreditation
Subscribe to our news
Members & Partners
Member login to TopLink
Strategic Partners' area
Partner Institutes' area
Global sites
Centre for the Fourth Industrial Revolution
Open Forum
Global Shapers
Schwab Foundation for Social Entrepreneurship
EN ES FR 日本語 中文
© 2022 World Economic Forum
Privacy Policy & Terms of Service