Monthly Archives: June 2016

The value of a person

Assume that the value of a person is measured by his or her marginal contribution to the society (MCS), which can be estimated by the difference between the value of the society with and without the person. It is speculated that a person who is more educated and experienced is likely to have a greater MCS. But a dimension that is often overlooked is its direction. The sign – either positive or negative – of the MCS is not necessarily a function of education and experience whereas its magnitude arguably is. As such, unless the distribution of the MCS for the highly educated and experienced is proven to be “substantially” negatively skewed in most states of the world, it is not only imprecise but also risky to assess the value (or expected contribution to an organization or the society) of a person primarily based on his or her education and experience and appoint them for high positions, especially for the positions that are systematically little monitored. They would be the subject of a higher variation, yet not necessarily a higher mean, of the MCS.