Human capital plays a cricital role in a country's economic development. However, unlike physical capital, human capital is usually embodied in the human body and can be cultivated through many different investment channels. This paper develops a measure of human capital based on the idea that investment in human capital should be reflected in a person's wage. We decompose wages into factors related to different forms of human capital and non-human capital and estimate the wage of a base worker, a worker with zero skill. We then use the predicted human capital wage relative to the wage of the base worker to construct an index for the human capital of the whole economy. Using 1979-1988 data from the Taiwan Manpower Utilization Survey, we compare the results of our human capital index with other human capital indices proposed in the recent literature. Based on growth accounting and aggregate production function estimates, our human capital index outperforms other human capital indices. We find that human capital contributes to 18%-35% of Taiwan's long-run growth. However, we also find that human capital accumulation has been apparently slowing down since 1988 which may affect the future growth of Taiwan's economy.