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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
Components of Human Development
Material Education Health Political Social
Deprivation Multidimensional Poverty Index
Average Level Human Development IndexEmpowerment
indicators
VulnerabilityIndicators of human security, sustainability, environment, well-being, decent work, etc.
Inequality
Inequality-adjusted HDI
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.
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Distribution of years of schoolingExample: Montenegro, Source: MICS 2006
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3.298
.3566.731.4635
7.221
.2496.2853.1605
14.98
.39221.07
16.38
36.64
.6062
6.971
1.141
8.772
.2139.0713
01
02
03
04
0P
erc
ent
0 5 10 15 20ys
Montenegro
Disposable Income, simulated
Distributions of HDI dimensions
Expected length of life, from life tables
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Life expectancy Atkinson measure(ε=1)
Japan 83.2 0.039Burundi 51.4 0.478Cameroon 51.7 0.444South Africa 52.0 0.302Mongolia 67.3 0.226Pakistan 67.2 0.329Russian Federation 67.2 0.115
Inequality-adjusted HDI
• Needs for distributional data at the level of household or individual
• Variables relevant to three dimension:Household consumption or income per capitaMean years of schoolingExpected length of life
• Source of data:Nationally representative household surveysUN Life tables
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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)
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Inequality adjusted HDI
9
Inequality-adjusted HDI
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Inequality-adjusted HDI
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Inequality-adjusted HDI
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Example: Slovenia Indicator Dimension
indexInequality
measure (A1)Inequality-adjusted
indexLife expectancy 78.8 0.930 0.043 (1–0.043) 0.930 = ∙
0.890Mean years of schooling
9 0.682 0.040
Expected years of schooling
16.7 0.811
Education index 0.782 0.040 (1–0.040) 0.782 = ∙0.751
Logarithm of GNI 10.16 0.780 GNI 25,857 0.238 0.122 (1–0.122) 0.238 = ∙
0.209HDI 0.828IHDI 0.8280.932=0.772Loss 1-0.772/0.822=0.068
Inequality-adjusted HDI
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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
Inequality-adjusted HDI
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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
Inequality-adjusted HDI
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Loss (%)
NA(0,11.5](11.5,28.0](28.0,45.5]
Inequality adjusted HDI
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0 10 20 30 40 50Loss due to inequality (%)
Developed
CE Europe and CIS
LA and Caribbean
E. Asia and Pacific
South Asia
Arab States
Sub-Saharan Africa
HDI Health Education Income