Measuring and Comparing Human Capital investing in development

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Measuring and Comparing Human Capital investing in development and growth Philipp Schuller Co-Director European

Measuring and Comparing Human Capital investing in development and growth Philipp Schuller Co-Director European Human Capital Project Lisbon Council Building a European VET Area 26 -27 April 2007, Cedefop

Human Capital Endowment per Employed Person 2004 Parent Schooling Tertiary Adult On the Job

Human Capital Endowment per Employed Person 2004 Parent Schooling Tertiary Adult On the Job 400, 000 300, 000 250, 000 200, 000 150, 000 100, 000 50, 000 ga l Po rtu n ai Sp ly Ita ria st Au ce an la er et h N Fr nd s an y G er m an d nl Fi m iu lg Be en ed Sw nd la ng Ki d te ni Ire do m k en m ar da an a C D U ni te d St at e s 0 U iappp$ (base 2000) 350, 000

Human Capital Utilization (Employed/Total)

Human Capital Utilization (Employed/Total)

iappp$ (base 2000) Human Capital Productivity (CS GDP/HC Stock)

iappp$ (base 2000) Human Capital Productivity (CS GDP/HC Stock)

Policy Impact q Europe has a human capital gap – in 2020 we will

Policy Impact q Europe has a human capital gap – in 2020 we will need 30% more human capital to meet global growth rates of 4 -5% p. a. q Human capital investment and management differ widely across Europe: countries on the periphery are in the lead leaving the traditional heavyweights behind. q The leader countries show that high investment and good management of human capital are compatible with the European social model. q Europe's hope are not the young but the old: more than 50% of human capital stems from adult education and learning on the job. q Growth comes from investing not cost cutting – this is as true for human capital investing as for financial investing