Measures of human capital - Consultation

The concept of human capital and its importance for economic development has been discussed in economic literature for centuries. Human capital is a driver of economic growth and therefore, in order to better understand the dynamics of an economy, it is important to measure accurately the stock of human capital assets. Stocks of capital are also a useful measure to monitorsustainability. The formal study and creation of human capital theory began in earnest in the 20th century, but the statistical measurement still remains in its infancy; there are challenges with its definition, methodology, accuracy and international comparability.This article is structured in four sections, the first section outlines: how to feed into ONS‟s consultation on the measurement of human capital.Then the article moves on to explain:the concept of human capital; why measuring human capital is important; and the methodology the Office for National Statistics (ONS) uses to measure human capita