How does the HDI reflect income disparities among different groups?

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How does the HDI reflect income disparities among different groups?

The Human Development Index (HDI) reflects income disparities among different groups by taking into account three dimensions of human development: income, education, and life expectancy.

In terms of income, the HDI considers the Gross National Income (GNI) per capita, which is the average income earned by individuals in a country. This indicator helps to measure the economic well-being of a population.

However, the HDI also recognizes that income disparities can exist within a country, and it aims to capture this by considering the distribution of income. The Inequality-adjusted HDI (IHDI) takes into account income inequality within a country, providing a more comprehensive picture of human development.

By incorporating income disparities and inequality measures, the HDI provides a more nuanced understanding of human development and reflects the varying levels of well-being among different groups within a country.