ABSTRACT
The Organization for Economic Cooperation and Development (OECD) and the World Bank are the two agencies primarily responsible for spreading human capital analysis of education to developed and developing countries. Treating students as human capital is embedded in the notion that government’s goal is economic growth. In this context, education becomes a form of economic investment and, consequently, the value of education is measured by its contribution to economic growth. How do you measure education’s contribution to economic development? Answering this question requires a methodology for human capital accounting. When the methods of human capital accounting are applied to an education system, schools can be valued by economic standards.
