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The Economic Value of a Person

Can we calculate the Economic Value of a Person like other goods??

Yes, It is possible now. A Researcher (Named, Ravee Shekhar) in 2020 has make a Unique Formula to calculate it very easily.

Summary is as follow:

Any Person either Man or Woman is working in any field known as Labours. According to Economics, They are count as Human Resources. Therefore, like every resource, it should have the Fix Economic Value. Human life is priceless. No one can cultivate the life by the virtue of Money. Many Economists are trying to find the Value of Human Life but it may be different from the Economic Value of a Person. Labours are count as one of the Four Factor of Production in Economy. Labours are playing a very vital role because the stability of Any Economy depends on his Production Capacity & Human Resources. One-way to calculate the value of human life is to look at how much more money a worker earns for doing a risky job. Another method is based on our behaviour. How much will we pay for safety features such as bicycle helmets or antilock brakes?

As of 2011, the US Environmental Protection Agency set the value of human life at $9.1 million. Meanwhile, the US Food and Drug Administration put it at $7.9 million and the US Department of Transportation figure was around $6 million.

Here, the entire Figure is showing the value of human life, not the Economic Value of a Person. Because The Economic Value of a Person must follow the following Terms & Conditions:

1. It should depend on the Current Age of a Person. 2. It should depend on the span of Working Years. 3. It should depend on Employment, Unemployment & Wages. 4. It should depend on Geographical Boundaries because the Economy is highly influenced by Political & Geographical forces. 5. More than 99% of the World Population should be able to earn that much amount in their entire life.

Therefore, we seek a parameter, which can decide the Economic Value of a Person from all over the world. This Scale must be able to use different factors of Human Resources that have a very significant role in the overall earnings of a Worker. They are Life Expectancy, Total Working Years, Annual Income, Current Age and Inflation. In addition, This Scale must be able to distinguish between two persons and Countries.

Adam Smith ushered in Classical economic thought with his 1776 publication The Wealth of Nations, “the wealth of nations” was identified with the annual national income rather than bullion or money in the royal treasury. Thus, The Economic Value of a Person must be independent of Family Wealth (Ancestor Property).

Now, New Developed Formula is:

ECONOMIC VALUE OF A PERSON = (Log √ LIFE EXPECTANCY – Log √ CURRENT AGE) × ANNUAL INCOME × REMAINING YEARS OF WORK × INFLATION.

It produces the Economic Value of a Person at current Scenario. Here, Life Expectancy is the Life Expectancy of a related Country where the Person is working. Current Age is the Person’s Current Age.

Annual Income is the Person’s Annual Income.

Remaining Years of work is the Time duration that a Person willing to work (i.e. - Difference of Retirement Age & Current Age).

Inflation is the Annual Rate of Inflation in the country in Quantitative form. i.e. – 4, 6.5, 7, 7.4, 8 …

Example: # First Case- We take an example of 25 Years old Male worker with earning the value of $25000 annually. He is willing to work (Retirement Age) until 65 Years of age. How much the Economic Value of a person for the entire world ???

(Life Expectancy in India is 69, in USA 77, in China 75, in South Africa 61, in UK 83, in Australia 82 respectively in 2020.)

(World Annual Rate of Inflation in 2020 is 3%)

Economic Value of a Person from INDIA is (log√69 - log√25) × 25000 × 40 × 3 = $ 661,363.623/-

Economic Value of a Person from the USA is (log√77 - log√25) × 25000 × 40 × 3 = $732,826.074/-

Economic Value of a Person from CHINA is (log√75 - log√25) × 25000 × 40 × 3 = $715,681.882/-

Economic Value of a Person from SOUTH AFRICA is (log√61 - log√25) × 25000 × 40 × 3 = $ 581,084.739/-

Economic Value of a Person from the UK is (log√83 - log√25) × 25000 × 40 × 3 = $781,707.125/-

Economic Value of a Person from AUSTRALIA is (log√82 - log√25) × 25000 × 40 × 3 = $773,810.765/

1. Second Case -

(1) A 32 Years old Male worker from India is currently earning 10 Thousand dollars annually. He is willing to work until 62 years of age. How much is the Economic value of that worker ? (The Annual Inflation Rate is 4.1 % & Life Expectancy of Male is 69 Years in India.)

(log√69 - log√32) × 10000 × 30 × 4.1 = 0.16685 × 1230000 = $ 205,225/- (2) A 35 Years old female worker from India is currently earning 10 Thousand dollars annually. She is willing to work until 62 years of age. How much is the Economic value of that worker ? (The Annual Inflation Rate is 4.1 % & Life Expectancy of Female is 72 Years in India.)

(log√72 - log√35) × 10000 × 27 × 4.1 = 0.15663 × 1107000 = $ 173,389/- (3) A 25 Years old Male worker from India is currently earning 10 Thousand dollars annually. He is willing to work until 62 years of age. How much is the Economic value of that worker ? (The Annual Inflation Rate is 4.1 % & Life Expectancy of Male is 69 Years in India.)

(log√69 - log√25) × 10000 × 37 × 4.1 = 0.22045 × 1517000 = $ 334,423/-

(4) A 32 Years old Male worker from Singapore is currently earning 10 Thousand dollars annually. He is willing to work until 62 years of age. How much is the Economic value of that worker ? (The Annual Inflation Rate is 1.0 % & Life Expectancy of Male is 82 Years in Singapore.)

(log√82 - log√32) × 10000 × 30 × 1.0 = 0.20433 × 300000 = $ 61,299/-

(5) A 32 Years old Male worker from Japan is currently earning 10 Thousand dollars annually. He is willing to work until 72 years of age. How much is the Economic value of that worker ? (The Annual Inflation Rate is 1.3 % & Life Expectancy of Male is 82 Years in Japan.)

(log√82 - log√32) × 10000 × 40 × 1.3 = 0.20433 × 520000 = $ 106,251/

Full Article is Available at Academia.edu

WisdomofScience.com (talk) 14:05, 13 April 2023 (IST)