Estimation of the Level and Distribution of Households Human Capital the Case of Tehran

The main goal of this paper is to estimate the level and distribution of human capital (HC) in Tehran province, Iran. In doing this we have first reviewed theoretical and empirical literature of human capital. And then we used Do gum Method for estimation of level and distribution of households’ human capital in Tehran. The Do gum Method is based on three old methods of estimation. We used latent variable, because human capital is a qualitative variable. The results show that there is a positive relation between variables which are related to human capital and formation of human capital in Tehran province. Also, the results indicate that household income and human development are respectively the most and the least effective on households’ human capital in Tehran.