Presenting a model for measurement of human capital monetary value and its estimation in Iran

Human capital has an essential and important role in economic growth and development, but because of lack of accurate statistics and the difficulty of calculating it, usually proxies such as enrollment rate, average years of schooling for labor force et cetera are used that all cover only some portion of human capital. The purpose of this article was to estimate Human Capital Monetary Value (HCMV) in Iran which can include the highest volume of human capital value. Therefore, several approaches and methods of Human Capital Monetary Value (HCMV) were evaluated and because of existing constraints the Income-based approach was utilized. In this approach several important variables such as discount rate, shadow price, exchange rate and average wages were estimated. In addition, sources of data for key variables were offered. The estimations results showed a 5.2 percent annual growth in Human Capital Monetary Value during 1960-2010. Furthermore, some existing problems such as calculating exchange rate were evaluated.