Measuring What People Know : Human Capital Accounting for the Knowledge Economy

For OECD governments, the need to rethink human capital information and decision making systems is an urgent task. Fiscal limits are colliding with a growing demand for more education and training. At the same time, companies and individuals are unhappy with the fit between schooling and the world of work. Those that hope to engage in lifelong learning find confused economic incentives, high levels of risk, and rigid certification monopolies. Everyone is seeking greater efficiency in the allocative process surrounding human capital. This goal becomes even more important as the knowledge economy expands and the intangible assets in poeples minds make the difference between competitive success and failure. Solutions to this pivotal signalling problem are emerging in the public and private sectors. This report looks at innovative programs in prior learning assessment and human capital accounting that improve the quality and availability of human capital information.