Economics Hdi Questions Medium
The Human Development Index (HDI) takes into account social inequality by incorporating three dimensions of human development: income, education, and life expectancy.
Firstly, the HDI considers income inequality by measuring the average income per person in a country, known as Gross National Income (GNI) per capita. However, it also takes into account the distribution of income within a country by using the Inequality-adjusted HDI (IHDI). The IHDI adjusts the HDI value based on the level of inequality in income distribution, giving a more accurate representation of human development by considering the impact of social inequality on people's well-being.
Secondly, the HDI accounts for education inequality by measuring the average years of schooling and expected years of schooling. It considers not only the quantity of education but also the quality, as it incorporates the mean years of schooling, which reflects the average educational attainment of the population, and the expected years of schooling, which represents the years of education a child is expected to receive.
Lastly, the HDI includes life expectancy as an indicator of health and well-being. It measures the average life expectancy at birth, which reflects the overall health conditions and access to healthcare in a country. By considering life expectancy, the HDI acknowledges the importance of health in human development and recognizes that social inequality can have a significant impact on people's access to healthcare and overall well-being.
In summary, the Human Development Index (HDI) accounts for social inequality by incorporating income inequality through the Inequality-adjusted HDI, education inequality through average years of schooling and expected years of schooling, and life expectancy as an indicator of health and well-being. By considering these dimensions, the HDI provides a comprehensive measure of human development that takes into account the impact of social inequality on people's well-being.