JRC STATISTICAL AUDIT ON THE GLOBAL TALENT COMPETITIVENESS INDEX 2014

The JRC analysis suggests that the conceptualised multilevel structure of the Global Talent Competitiveness Index (GTCI) 2014 is statistically coherent and balanced (i.e., not dominated by any pillar or sub-pillar; all indicators contribute to the variation of the respective Input/Output Sub-Indices and to the overall index). The Index reliability, as measured by the Cronbach-alpha value is very high at 0.95 (well above the recommended 0.7 threshold for a reliable aggregate). Furthermore, the analysis has offered statistical justification for the equal weights and the use of arithmetic averaging at the various levels of aggregation and has shown that the GTCI is “statistically” more reliable in the current form, namely built as the average of the six pillars, instead of the average of the Input and Output Sub-Indices. Points that call for possible refinements of the GTCI framework were also identified. These refinements regard mainly six out of the 65 variables, namely Difficulty of Hiring, FDI Inflow, Extent and Effect of Taxation, Pay Level – Head of Organisation, Mid-value Exports, and finally New Product Entrepreneurial Activity. Although present in the conceptual framework, these variables do not contribute significantly to the variation of the GTCI country scores and consequently do not have an impact on the index ranking. The GTCI development team has opted to keep these variables in the current framework because of their conceptual relevance to the phenomenon but will refine next year’s release along these issues.

SAISANA Michaela;  HARDEMAN Sjoerd; 

2016-03-11

INSEAD

JRC93617

978-2-9522210-7-8,