Human Capital

The human capital measures in the Report Card assess the education and skill levels of a state's population from early childhood through adulthood and the extent to which human capital (in the form of education and skill levels) has been accumulated among different population groups. Measures of human capital accumulation are included in the Report Card because “human capital theory” argues that people can be viewed as an economic asset in which increased investment in health, skills, and knowledge provide future returns for the economy through increases in labor productivity. Moreover, for individual workers in a global information-age economy, education levels now determine economic prospects. For example, the weekly earnings payoff difference between a high school graduate and a college graduate has more than doubled between 1980 and 2000.5 Thus, human capital is not only an asset in itself, but also (at higher levels) results in higher wages that can be saved to accumulate wealth.

Measuring actual levels of human capital presents significant methodological problems. Therefore, the human capital indicators used in the Report Card represent a proxy for human capital accumulation and distribution.

Head Start Coverage
Basic Educational Proficiency
Associates Degree Attainment
College Attainment
College Attainment by Race
College Attainment by Income
College Attainment by Gender