Factual models for human capital assessment

Abstract

The socioeconomic development of society goes hand in hand with accumulation and enhancement of human capital, yet many of the issues concerning its assessment are still subject to research. At present, human capital is estimated with the help of abstract models that indirectly assess its possessors based on statistical and actual measurements. Such models are applicable at macro level and to a certain extent at meso level, though cannot be used at microlevel. By contrast, factual models assess directly the possessors of human capital and allow for individual economic, physiological, sociological, psychological indicators. The research aims to identify the prerequisites for designing and create a factual model for human capital assessment. Methodologically, the study rests on the human capital theory and labour economics. To examine the World Bank’s statistics, the study applied a set of general scientific methods: comparative analysis, synthesis, induction and deduction, modelling, the mathematical method. The paper proposes a factual assessment model that allows digitizing the value of human capital, both general and special, based on a set of 56 indicators and sub-measurements. Its distinctive feature is a comprehensive consideration of all components of human capital: physiological, cognitive, social and emotional. The model puts emphasis on the measurement of social and emotional component with the use of a social psychological test and a comparative index of achievements and penalties received by an employee at a previous job. The results of applying the proposed model are consistent with the estimates obtained within the framework of generally accepted cost measurements, and can be used at the micro level both by individual businesses and households.