Development and Changes in the Human Capital Index among Pre-Retirement Population in Thailand - 2011 through 2017

Abstract

Thailand has become an ageing society and has several plans to promote human resources as the key for continued national development. This study developed and measured human capital among the pre-retirement population in Thailand, since the goals of this study were to measure and compare the levels of individuals’ human capital in a different group. To do so, we created a new instrument, a Human Capital Index (HCI) for the pre-retirement population in Thailand, which is consistent with human capital theory, and the World Health Organization (WHO)’s concept of functional ability. This study used secondary data from the National Statistical Office (NSO)’s Survey of Older Persons in Thailand conducted in 2011, 2014, and 2017 to gauge the level of HCI of pre-retirement population in Thailand. Results showed that the level of HCI in males is higher than that of females in every survey. Second, people who lived in urban areas had a better HCI than people who lived in rural areas. Third, people who lived in Bangkok had a higher HCI when compared with those living in other regions. Lastly, people who earned a high average annual income tended to have a higher HCI in every survey. The Thai public sector should therefore support the human capital of Thai people, such as promoting lifelong learning and skill development in order to meet the needs and demands of the labor sector. This is especially necessary for females, those living in rural areas and in the North, South, Central, and Northeast regions, and for people who earn a lower average annual income.