Human Capital System Evaluation in the Context of the European Union Countries

For economic science HC concept is known for at least the last fifty years in the works of Schultz (1964), Becker (1962), when such issues as productivity and effectiveness of individual were touched. Therefore, in the current economic theories it is also very important to recognize the role of human capital and its management necessity, to understand the HC formation and application as a manageable process, which you need knowing well both in micro and in macro level. Evaluation of HC in macro level should include not only direct HC evaluation, but environmental evaluation as well. There must be evaluated not only the formal value of HC, but also the material, economical, social, environmental conditions, determining its appliance productivity and the need of systematic approach to HC. HC system evaluation framework in country level consists of a number of social and economic indicators, which depending on their size and system performance are expressed in various sizes of absolute or relative indicators. The integration of these indicators into a single one, form an integrated index. For various phenomena to investigate and analyze in practice, the index method is used often, which helps to reveal the links and the structure between the researched phenomena (Human Development Index (Human development report 2011), the index of Genuine Wealth Assessment (Genuine Wealth Assessment (2012), and so on.). Applying index calculation method, this article aims to reveal the indicators characterizing the formation principles of HC system, creating their evaluation methodology and on its base performing a comparative HC system-level analysis among the EU countries. The paper presents the main advantages of multi-factor indices method application, evaluating particular areas of social and economic activities; there is also proposed a seven stages process of HC system's integrated index formation and its practical adaptability comparing the selected EU countries and determining their level of HC development. The results of accomplished comparative evaluation of HC system in the 27 European Union countries using five groups of indices (social, innovation, consumer value - income, costs, and economic development) allowed creating an information basis selecting the effective indices, making it possible to evaluate the formation level of HC system in individual EU countries.