Enter the health index, education index, skills index, and work experience index into the calculator to determine the Human Capital Index.

## Human Capital Index Formula

The following formula is used to calculate the Human Capital Index (HCI).

HCI = (H * E * S * W) / 100

Variables:

• HCI is the Human Capital Index
• H is the health index (0-100)
• E is the education index (0-100)
• S is the skills index (0-100)
• W is the work experience index (0-100)

To calculate the Human Capital Index, multiply the health index, education index, skills index, and work experience index together. Then, divide the result by 100 to get the Human Capital Index. Each index ranges from 0 to 100, with 100 representing the best possible outcome.

## What is a Human Capital Index?

The Human Capital Index is a measurement tool developed by the World Bank to quantify the amount of human capital a child born today can expect to attain by the age of 18. It measures the knowledge, skills, and health that a child can expect to accumulate throughout their youth, considering factors such as education, health, and survival rates. The index is designed to highlight how improvements in current health and education outcomes can lead to significantly greater productivity of the next generation of workers.

## How to Calculate Human Capital Index?

The following steps outline how to calculate the Human Capital Index (HCI).

1. First, determine the health index (H) ranging from 0 to 100.
2. Next, determine the education index (E) ranging from 0 to 100.
3. Next, determine the skills index (S) ranging from 0 to 100.
4. Next, determine the work experience index (W) ranging from 0 to 100.
5. Finally, calculate the Human Capital Index (HCI) using the formula: HCI = (H * E * S * W) / 100.
6. After inserting the values of H, E, S, and W into the formula, calculate the result.

Example Problem:

Use the following variables as an example problem to test your knowledge.

health index (H) = 80

education index (E) = 90

skills index (S) = 85

work experience index (W) = 95