HUMAN CAPITAL ASSESSMENT METHODOLOGY

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

Published: Aug 25, 2023

  Yurii Safonov

  Viktoriia Borshch

  Mykhailo Danylko

Abstract

The main purpose of the paper is to analyse the existing methods and procedures of estimation of human capital as a dominant factor in improving profitability and competitiveness of the enterprise. The main tasks of the paper are to study and analyse the concept of human capital and its characteristics, to systematise approaches and methods of estimation of human capital within the framework of the company and the national economy. Methodology. This study analyses the theoretical basis of the estimation of human capital at different levels. The method used is literature review. Findings. The article raises the problem of using human capital as one of the indicators of efficient development of the economy. The analysis of the methodology of estimation of human capital is carried out. The article considers current methods of estimation of human capital at different levels: micro-, meso-, macro-, as well as their comparative analysis. The characteristics of the basic approaches to the estimation of human capital are considered, the analysis of the problems of indirect methods of estimation of human capital, objectivity and sufficiency of data for the construction of estimates is carried out. External factors such as socio-psychological resources, environmental influences, human lifestyles, such as dietary intake, need to be taken into account in order to estimate human capital accurately. Each approach has its own strengths and weaknesses. The weaknesses are more related to the difficulties in quantifying some of the components of human capital and the difficulties in collecting, processing and statistically analysing information at all levels of the study. Each approach has its own strengths and weaknesses. The weaknesses are more related to the difficulties of quantifying some components of human capital, and the difficulties of collecting, processing and statistically analysing information at all levels of the study. The authors also found that the investment approach is the most popular and provides the most adequate estimates. Practical implications. The results of this study provide a methodological basis for improving the methodology of estimating the value of human capital. The analysed approaches can be used at different levels of the national economy (macro-, meso- and micro-) by different organisational structures for further management decisions.

How to Cite

Safonov, Y., Borshch, V., & Danylko, M. (2023). HUMAN CAPITAL ASSESSMENT METHODOLOGY. Baltic Journal of Economic Studies, 9(3), 179-184. https://doi.org/10.30525/2256-0742/2023-9-3-179-184
Article views: 407 | PDF Downloads: 214

##plugins.themes.bootstrap3.article.details##

Keywords

human capital, method, assessment, national economy, labour

References

Ani Matei, Reli Ceche Assessment of Human Capital and Development. Contributions from Structural Funds. Available at: http://aei.pitt.edu/94159/1/Lucrare_ACADEMOS_pdf.pdf

Artuc, E., Docquier, F., Özden, Ç, & Parsons, C. (2015). A Global Assessment of Human Capital Mobility: The Role of Non-OECD Destinations. World Development, vol. 65. pp. 6–26. DOI: https://doi.org/10.1016/j.worlddev.2014.04.004

Becker, C. S. (1993). Human Capital. A Theoretical and Empirical Analysis with Special References to Education. 3-th edition, The University of Chicago Press.

Borshch, V. I. (2020). Managerial capital in the healthcare system: theory and methodology. Extended abstract of Doctor’s thesis. Chernihiv.

Di Bartolo, A. (1999). Modern Human Capital Analysis: Estimation of US, Canada and Italy Earning Functions. Working Paper No. 212, Dipartimento di Statistica, Universitàdeglistudi di Milano-Bicocca.

Graham, J. W., & Webb, R. H. (1979). Stocks and depreciation of human capital: new evidence from a present-value perspective. Rev. Income Wealth, vol. 25 (2), pp. 209–224. DOI: https://doi.org/10.1111/j.1475-4991.1979.tb00094.x

Guillaumont, P., McGillivray, M., & Wagner, L. (2017). Performance Assessment, Vulnerability, Human Capital, and the Allocation of Aid Among Developing Countries. World Development, vol. 90, pp. 17–26. DOI: https://doi.org/10.1016/j.worlddev.2015.05.005

Huges, A. Human Capital Assessment. Available at: https://www.alexanderhughes.com/service/governance_board_services/

Kokkinen, A. (2010). Assessing human capital in the national accounts—is there a feedback to theory? in Proceedings of the 31st General Conference of the International Association for Research in Income and Wealth (IARIW), Session 8C, August 2010 (St. Gallen, 2010). Pp. 22–28.

Makazan, Y., & Los, V. (2020). Methodical approach to the assessment of human capital level of machine-building enterprises. E3S Web Conf., 166 (2020) 13012. DOI: https://doi.org/10.1051/e3sconf/202016613012

Mincer, J., & Solomon, W. (1974). Family investment in human capital: earnings of women. J. Polit. Econ., vol. 82 (3), pp. 76–108.

Policies For Human Capital Development In Georgia. An ETF Torino Process Assessment. Available at: https://www.etf.europa.eu/sites/default/files/2020-03/04_trp_etf_assessment_2019_georgia.pdf

Schultz, T. W. (1961). Investment in Human Capital. The American Economic Review, vol. 51 no. 1, pp. 1–17.

Trovato, M. R. (2020). Human Capital Approach in the Economic Assessment of Interventions for the Reduction of Seismic Vulnerability in Historic Centres. Sustainability, vol. 12. 8059. DOI: https://doi.org/10.3390/su12198059

4 Techniques for Assessing Human Capital. Available at: https://www.hightechpartners.net/blog-webinars/blog/4-techniques-for-assessing-human-capital