Estimation of Human Capital In Iran Using Fuzzy Logic

Human capital is a hidden variable. In different economic studies, various proxies have been used as a proxy for human capital, including the average literacy index, the number of graduates or the average number of years of schooling. This study will review the economic literature first, and then the three pillars of human capital index including education variables, skills and health will be analyzed for the Iranian economy. In addition, by using fuzzy approach and Mamdani Fuzzy Inference System, the human capital index in the Iranian economy during the 1981-2019 period will be estimated. The results of this calculation shows that during the period under study, the human capital index has continuously grown; in 1981, the index was estimated at 0.13 and 0.59 in 2019. On this basis, it can be stated that human capital in the Iranian economy during the 1981 to 2019 period has grown significantly. This accumulation of human capital can be seized in the production processes, leading to increase in production and productivity..