Human Capital Index Calculator

The Human Capital Index (HCI) is a measure developed by the World Bank to assess the potential of individuals born today to achieve their full productive potential, considering factors like education and health. The HCI ranges from 0 to 1, with higher values indicating better human capital outcomes.

Key Factors in the HCI Calculation

1. Life Expectancy: The probability of survival until adulthood (expressed as a percentage).
2. Expected Years of Schooling: The total number of years a child is expected to be in school.
3. Learning-Adjusted Years of Schooling: The effective years of schooling considering the quality and learning outcomes.

Formula for HCI

The formula is given by:

\[ \text{HCI} = \frac{\text{Life Expectancy at Birth}}{100} \times \frac{\text{Learning-Adjusted Years of Schooling}}{\text{Expected Years of Schooling}} \]

Example Calculation

If the life expectancy is 75 years, expected schooling is 12 years, and learning-adjusted schooling is 10 years:

\[ \text{HCI} = \frac{75}{100} \times \frac{10}{12} = 0.625 \]

This means that a child born today is expected to achieve 62.5% of their full productive potential.

Importance and Usage

The HCI helps governments and policymakers prioritize investments in health and education. Understanding a country’s HCI is crucial for long-term economic planning and sustainable growth.

Common FAQs

1. What is the purpose of the Human Capital Index?

   • The HCI highlights the importance of human capital in economic growth, guiding decisions on public policy.

2. How can countries improve their HCI?

   • By investing in healthcare, education, and nutrition programs, countries can improve the health and learning outcomes of their populations.

3. Why is learning-adjusted schooling included?

   • It accounts for the quality of education, emphasizing that years spent in school should lead to meaningful learning.