World Bank's Human Capital Index


Source: World Bank (link)


Human Capital Index is an index to measure how much capital loses through a lack of education and health on early stage of children' age. This index is firstly published by World Bank in 2018. This index ranged between 0 and 1, with 1 means maximum potential is reached. 

HCI also means a comparison between the future that will be achieved by one country by its current status compared to the future that could be achieved if they fully maximized the intervention on health and education on early stage of age of their children. 

The HCI can give a picture of how much that gap will be. The HCI valued 0.7 means the productivity of one generation in one country is 70% of what it could be if they fully maximize the intervention of health and education. 

The HCI comprises of three components:

First, survival. This means how long the children can survive with their current condition. The better their ability to survive, the longer their age expectation. Survival is measured from under-5 mortality rate. 

Second, expected years of learning-adjusted school. This includes the quantity and quality of education. Quantity of education is measured from expected years of schooling by age 19. While quality of education is measured from the results from international student achievement tests. 

Third, health. This component uses two indicators for a country’s overall health environment: (1) the rate of stunting of children under age 5; and (2) the adult survival rate, defined as the proportion of 15-year-olds who will survive until age 60. The first indicator reflects the health environment experienced during prenatal, infant, and early childhood development. The second reflects the range of health outcomes that a child born today may experience as an adult.


Details of the Human Capital Index can be seen in the World Bank' publication: The Human Capital Project (2018) pdf

(Thomas Soseco)


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