Human Capital and Ageing

Clare Ward

Deputy Government Statistician, Statistics New Zealand

Paris, 28 June 2012

June 2012

OECD Framework for Measuring Well-Being and Progress

2

Quality of Life Material Living Conditions

Individual Well-Being (Today)

Sustainability of Well-Being Over TimeEconomic Capital

Human CapitalSocial Capital

My Three Points

Human capital is a critical dimension of sustainable development so we can’t ignore it

Customer needs should drive our statistical development agenda

Given its importance, it’s a case of how we measure human capital, not if we do

3

Simplified Model

4

Stock of Human Capital

Entrants Exits

• From education• Immigration• Fertility

• Retirement• Emigration• Mortality

Health; Education and Training; Labour Market; Retirement; Social Assistance; Immigration & Emigration; Justice

Employer, employee, provider attitudes and expectations

My Three Points

5

Human capital is a critical dimension of sustainable development so we can’t ignore it

Customer needs should drive our statistical development agenda

Given its importance, it’s a case of how we measure human capital, not if we do

Varied Policy Drivers for Human Capital Measurement

Social Policy

Standard of Living

Well-being

Equity, literacy and social mobility

Individual life-cycle decisions

Economic Policy

Economic growth and productivity

Innovation and

knowledge transfer

Labour Market

Returns for Skills

Mismatches between and demand for

and supply of skills

Sustainability of the human capital stock

Current stock and change over time

Impact on National Accounts

Impact of demographic changes e.g.

ageing

Migration

Impact of immigration

and emigration on

stock of human capital

Education

Effectiveness of education

policy

Education output and productivity

6Source: Policy drivers for human capital measurement in New Zealand. CES June 2011

My Three Points

7

Human capital is a critical dimension of sustainable development so we can’t ignore it

Customer needs should drive our statistical development agenda

Given its importance, it’s a case of how we measure human capital, not if we do

Questions

What are the priorities in the measurement of human capital

What opportunities exist?

What are the main challenges we face?

Quick wins? Longer-term work?

What are our key messages for the Delhi conference?

8