Economics Hdi Questions Medium
The Human Development Index (HDI) measures income through the inclusion of the Gross National Income (GNI) per capita as one of its components. GNI per capita represents the average income earned by individuals in a country and is calculated by adding up all the income generated within a country (including income from abroad) and dividing it by the total population.
To measure income inequality, the HDI also considers the Inequality-Adjusted GNI per capita. This indicator takes into account the distribution of income within a country, reflecting the disparities in income levels among different segments of the population. It adjusts the GNI per capita by considering the income distribution and penalizing countries with higher inequality.
By incorporating GNI per capita and Inequality-Adjusted GNI per capita, the HDI provides a comprehensive measure of income that takes into account both the average income level and the distribution of income within a country. This allows for a more nuanced understanding of a country's economic development and the well-being of its population.