engleski

The association between human capital and overall productivity in the European Union countries

This study measures and compares the human capital of 26 European Union countries using the human capital index, which is calculated based on seven different human capital indicators. The overall human capital ranking lists Sweden at the top and Bulgaria at the bottom. This paper investigates what percentage of the variance in productivity measured by GDP per person employed could be explained by the human capital index. The results confirm the validity of human capital index because it explains more than 50% of the variance in productivity, whereas its individual subcomponents have less explanatory power. These research findings provide valuable information for policy makers when formulating effective strategies for strengthening their countries’ human capital and, consequently, their productivity.

national intellectual capital ; human capital ; European Union ; national wealth ; productivity ; economic growth ; GDP per person employed.

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