Proceedings of The 4th International Conference on Business, Management and Economics
Development of Methodology for Assessing Human Capital Productivity
LAkhmetshina Alsu Rinatovna, Gabdullin Nail Maratovich, Kirshin IgorAlexandrovich
The article proposes a methodological approach and develops a methodology for assessing the productivity of human capital. The author’s methodology for measuring the productivity of human capital was developed, based on the use of the Jorgenson-Fraumeni methodological approach and a multivariate model for assessing productivity, including the measurement of the potential and factors of non-economic development of human capital The authors established a close statistically significant correlation of per capita national wealth and stocks of per capita human capital, per capita human capital and Gross Domestic Product per worker, as well as per capita human capital and per capita Gross Domestic Product. Based on evidence of the dominance of the human capital input to gross output, a hypothesis has been put forward and substantiated according to which human capital has higher productivity compared to other factors of production. Based on an empirical analysis of the World Bank dataset for 142 countries, the article proves the inverse relationship of human capital productivity, measured as the quotient of dividing per capita Gross Domestic Product by per capita human capital. The maximum return on Gross Domestic Product per capita is shown by the Senegal economy, as the economy with the smallest stock of human capital, the minimum – the economy of Iceland, the leader in terms of human capital stocks.
Keywords: intangible assets; labor productivity; national wealth; total factor productivity; skills.