A0387
Title: Human capital development measurement in a digital world
Authors: Alexandros Bechlioulis - University of Piraeus (Greece) [presenting]
Claire Economidou - University of Piraeus (Greece)
Nikolas Topaloglou - Athens University of Economics and Business (Greece)
Abstract: Digital technologies have moved beyond the margins to become transformative drivers reshaping the very fabric of global human capital development. The purpose is to challenge the adequacy of the United Nations Human Development Index (HDI) - a cornerstone metric in development studies - by proposing a fundamental expansion: The inclusion of digitalization as a critical fourth dimension. Two innovative methodologies are employed within the stochastic dominance framework: A stochastic bounding analysis to construct a digital performance index and a stochastic spanning test to evaluate welfare implications. Results reveal a strikingly different global development narrative. When human capital development is assessed through the proposed digitally-augmented HDI measure, traditional country rankings, based on the standard HDI, and developmental pathways are profoundly reshaped, exposing digitalization not only as a potent catalyst for advancement but also as a source of persistent and widening digital inequalities.
