Measuring what People Know

This book explores the problem of developing a framework for rethinking human capital information and decision making in light of the economic changes that are currently occurring in many Organisation for Economic Cooperation and Development countries. It examines human capital information and decision making in the context of recent developments in the measurement, accounting, and market recognition of competencies. The following are among the topics discussed in the book's seven chapters: defining the problem of human capital decision making under changing economic circumstances; reassessing existing theory/assumptions regarding human capital; considering the distinction between acquisition and utilization of embodied human competencies when making human capital allocation decisions; current practices in the financial accounting and reporting of training costs and labor force qualifications; overcoming obstacles to the measurement, accounting, and market recognition of human capital; improving the measurement, accounting, and market recognition of the stocks and flows of acquired human competencies; and the role of government and the benefits of rethinking human capital information and decision-making systems. Appended are estimates of allocation to individuals/firms/governments of costs/benefits of human capital acquisition and a summary of the characteristics of the Australian model of vocational education and training. Contains 214 references. (MN)