Russia’s Human Capital: What Is It Worth? <i> Part I</i>

Abstract

The paper provides monetary estimates for Russia’s human capital. In its first part the two main methods for estimating the value of the stocks of human capital are discussed — cost based and income based, or the retrospective and prospective ones. Particular emphasis is placed upon the works by Jorgenson and Fraumeni (1989, 1992). Recently a lifetime income approach pioneered by Jorgenson and Fraumeni has been selected as the preferred methodology for the OECD Human Capital Project which made available monetary estimates of the stocks of human capital for 15 countries. A special section summarizes major findings of this Project and highlights its methodology which in the second part of the paper is used for estimating the value of human capital in Russia.