DETERMINATION OF HUMAN CAPITAL VALUE IN MACRO LEVEL

Abstract

The productivity of the value creation process is determined not only by the continuous process of change, but also by the compliance of the factors involved in this process. Therefore, the evaluation of these factors is one of the most important economic challenges. Human Capital (HC) is one of the most important factors of value creation. Despite this, today a systemic methodology of the economic HC evaluation at macro level is missing. If the attempts of HC evaluation at enterprise level are found in the works of Mayo (2001), Baron & Armstrong (2007), Murray & Efendioglu (2007), Schwarz & Murphy (2008), AL-Ma‘ani & Jaradat (2010), Scholz, Stein & Bechtel (2004), there are practically no works that would express the HC value in monetary terms at macro level. This paper presents a complex technique of determining HC value at macro level, identifying the four constituents of HC value: HC value base, HC value depreciation, HC value recovery and HC value alteration. The creation of informational data base and the calculation of the HC value allow determining the monetary expression of the HC value at macro level and accomplishing the comparative analysis of the HC value in the EU countries.

DOI: http://dx.doi.org/10.5755/j01.em.18.2.4101