6533b825fe1ef96bd12824bb

RESEARCH PRODUCT

Competence, Education and Experience

subject

description

Human capital (HC) possessed by an individual is increased due to education and experience. HC is measured in terms of number of years spent on education and on work. Education and experience have been studied as determinants of earnings by a number of researchers. Both education and experience (E&E) contribute to form competence. We believe that competence is the product whereas education and experience are the process. It is logical to study the effect of the product i.e. competence, on earnings. This has also been empirically studied by the researchers. Present discourse is to study competence as a measure of HC. We analysed Reflex data set and observed positive relationship of earnings with E&E (in the form of professionals) as well as competences. We deductively propose competence as a measure of HC, alternate to E&E. However, it may take long enough to establish as a valid and reliable measure of HC.