How does the Human Development Index (HDI) measure standard of living?

The Human Development Index (HDI) measures the standard of living by taking into account three key dimensions: income, education, and life expectancy.

Firstly, the HDI considers income as an indicator of standard of living. It measures the Gross National Income (GNI) per capita, which reflects the average income of individuals in a country. A higher GNI per capita indicates a higher standard of living, as it implies greater access to resources and opportunities for individuals to meet their basic needs and improve their quality of life.

Secondly, the HDI incorporates education as a crucial aspect of standard of living. It assesses the average years of schooling and expected years of schooling for individuals in a country. Higher levels of education indicate a better standard of living, as education equips individuals with knowledge and skills necessary for personal development, employment opportunities, and overall well-being.

Lastly, the HDI includes life expectancy as an indicator of standard of living. It measures the average number of years a person is expected to live in a country. Longer life expectancy reflects better access to healthcare, nutrition, and overall well-being, indicating a higher standard of living.

By combining these three dimensions, the HDI provides a comprehensive measure of standard of living, capturing not only economic aspects but also education and health factors. It allows for comparisons between countries and over time, providing insights into the overall development and well-being of a population.