New Human Development
Measures
DOHA, 9-11 May, 2011
HDR 2010
HDR 2010 Measures
• The main composite measures:
-
Revised HDI
Inequality-adjusted HDI
Multi-dimensional poverty index (replaces HPI)
Gender inequality index (replaces GDI and GEM)
HDR 2010 Human Development Measures
Empirical
measure
Deprivation
Components of Human Development
Material
Education
Health
Social
Multidimensional Poverty Index
Average Level Human Development Index
Vulnerability
Political
Empowerment
indicators
Indicators of human security, sustainability,
environment, well-being, decent work, etc.
Inequality-adjusted HDI
Inequality
Gender Inequality Index
Inequality-adjusted HDI
The country-average HDI conceals wide disparities in
distribution of HD across population within a country
• False impression: Equal distribution of HD within the country
• Inequality in dimensions of HDI
• Inequality in concentration of income and other forms of
material wealth
• Inequality in distribution of other characteristics (e.g., years
of education) is often recognized but rarely measured.
4
Distributions of HDI dimensions
Distribution of years of schooling
Example: Montenegro, Source: MICS 2006
Disposable Income, simulated
40
Montenegro
20
16.38
10
14.98
8.772
7.221
6.971
3.298
.3566.731.4635
.2496.2853.1605
.39221.07
.6062
1.141
.2139.0713
0
Percent
30
36.64
0
5
10
ys
15
20
5
Expected length of life, from life tables
Life expectancy
Japan
Burundi
Cameroon
South Africa
Mongolia
Pakistan
Russian Federation
83.2
51.4
51.7
52.0
67.3
67.2
67.2
Atkinson
measure(ε=1)
0.039
0.478
0.444
0.302
0.226
0.329
0.115
6
Inequality-adjusted HDI
• Needs for distributional data at the level of household or
individual
• Variables relevant to three dimension:
Household consumption or income per capita
Mean years of schooling
Expected length of life
• Source of data:
Nationally representative household surveys
UN Life tables
7
Inequality-adjusted HDI
Distributional data on life expectancy:
• Abridged Life Tables from UN Population Division based on
mortality data and on survival models
Household survey data on income and education:
• World Bank: International Income Distribution Database
(LSMS and similar household surveys)
• EU-SILC (on income and living conditions for EU member
states)
• LIS (for OECD and other countries)
• MICS, DHS (for education)
8
Inequality adjusted HDI
9
Inequality-adjusted HDI
10
Inequality-adjusted HDI
11
Inequality-adjusted HDI
Example: Slovenia
Life expectancy
Mean years of
schooling
Expected years of
schooling
Education index
Logarithm of GNI
GNI
HDI
IHDI
Loss
Indicator Dimension
Inequality
Inequality-adjusted
index
measure (A1)
index
78.8
0.930
0.043
(1–0.043) ∙ 0.930 = 0.890
9
0.682
0.040
16.7
10.16
25,857
0.828
0.811
0.782
0.780
0.238
0.040
(1–0.040) ∙ 0.782 = 0.751
0.122
(1–0.122) ∙ 0.238 = 0.209
0.8280.932=0.772
1-0.772/0.822=0.068
12
Inequality-adjusted HDI
Policy relevance:
• Allows a direct link to inequalities in dimensions
• Inform policies towards inequality reduction
• Evaluation tool for various policy options aimed at inequality
reduction
• Leads to better understanding of inequalities across population
and their contribution to the overall loss of development
13
Inequality-adjusted HDI
Limitations:
• IHDI is not association sensitive – does not account for
multiple deprivation
• Negative and zero values are adjusted
• Limited international comparability since data refer to
different time points
14
Inequality-adjusted HDI
Loss (%)
NA
(0,11.5]
(11.5,28.0]
(28.0,45.5]
15
Inequality adjusted HDI
0
10
Loss due to inequality (%)
20
30
40
50
Sub-Saharan Africa
Arab States
South Asia
E. Asia and Pacific
LA and Caribbean
CE Europe and CIS
Developed
HDI
Health
Education
Income
16