19:26 25 November 2019
OECD proposes new definition of human capital
OECD proposed a new measure of human capital that highlights the low value of education in Eastern European countries during the communist years, the Polish Institute of Economics (PIE) said. Unlike earlier, it takes into account both quantitative and qualitative aspects of human capital.
The new measure of human capital is based on mean years of schooling (MYS) and real rates of return on education. Return rates may vary from country to country.
In the case of Eastern European countries, a more pronounced increase in the rate of return on education is visible in the 1990s, i.e. in the period when the economies of Central and Eastern Europe were undergoing a transformation from a socialist system to a more market-oriented system.
(300gospodarka)
