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A Human Development Index by Income Groups

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  • Michael Grimm, Kenneth Harttgen, Stephan Klasen, and Mark Misselhorn

Abstract

One of the most frequent critiques of the HDI is that is does not take into account inequality within countries. We suggest a relatively easy and intuitive approach which allows to compute the three components and the overall HDI for quintiles of the income distribution. This allows comparisons of the level in human development of the poor and non-poor within and across countries. An empirical illustration shows large discrepancies in human development within countries especially in Africa. These discrepancies are lower the higher the HDI, but only weekly so. Inequality in income is generally higher than inequality in education and life-expectancy. --

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Bibliographic Info

Paper provided by Human Development Report Office (HDRO), United Nations Development Programme (UNDP) in its series Human Development Occasional Papers (1992-2007) with number HDOCPA-2006-07.

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Length: 36 pages
Date of creation: Oct 2006
Date of revision:
Publication status: Published as background research for the 2006 Human Development Report.
Handle: RePEc:hdr:hdocpa:hdocpa-2006-07

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Keywords: human development; water; sanitation;

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References

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  1. Stephan Klasen, 2006. "Guest Editor's Introduction," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 7(2), pages 145-159.
  2. David Cutler & Angus Deaton & Adriana Lleras-Muney, 2005. "The Determinants of Mortality," Working Papers 164, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  3. Angus Deaton & Salman Zaidi, 1999. "Guidelines for Constructing Consumption Aggregates For Welfare Analysis," Working Papers 217, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  4. Ravallion, Martin, 2001. "Measuring aggregate welfare in developing countries - How well do national accounts and surveys agree?," Policy Research Working Paper Series 2665, The World Bank.
  5. Ravallion, Martin, 1997. "Good and bad growth: The human development reports," World Development, Elsevier, vol. 25(5), pages 631-638, May.
  6. Sagar, Ambuj D. & Najam, Adil, 1998. "The human development index: a critical review," Ecological Economics, Elsevier, vol. 25(3), pages 249-264, June.
  7. Sahn, David E. & Stifel, David C., 2000. "Poverty Comparisons Over Time and Across Countries in Africa," World Development, Elsevier, vol. 28(12), pages 2123-2155, December.
  8. Angus Deaton, 2004. "Measuring poverty in a growing world (or measuring growth in a poor world)," Working Papers 178, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  9. repec:sae:ecolab:v:16:y:2006:i:2:p:1-2 is not listed on IDEAS
  10. Carola Gruen & Stephan Klasen, 2008. "Growth, inequality, and welfare: comparisons across space and time," Oxford Economic Papers, Oxford University Press, vol. 60(2), pages 212-236, April.
  11. Stephan Klasen, 2006. "UNDP's Gender-related Measures: Some Conceptual Problems and Possible Solutions," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 7(2), pages 243-274.
  12. Bidani, Benu & Ravallion, Martin, 1997. "Decomposing social indicators using distributional data," Journal of Econometrics, Elsevier, vol. 77(1), pages 125-139, March.
  13. Angus Deaton, 2005. "ERRATUM: Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 395-395, May.
  14. Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
  15. Srinivasan, T N, 1994. "Human Development: A New Paradigm or Reinvention of the Wheel?," American Economic Review, American Economic Association, vol. 84(2), pages 238-43, May.
  16. David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
  17. Gustav Ranis, Frances Stewart and Emma Samman, . "Human Development: beyond the HDI," QEH Working Papers qehwps135, Queen Elizabeth House, University of Oxford.
  18. Spatz, Julius & Klasen, Stephan & Grosse, Melanie, 2006. "Creating National Poverty Profiles and Growth Incidence Curves with Incomplete Income or Consumption Expenditure Data: An Application to Bolivia," Proceedings of the German Development Economics Conference, Berlin 2006 26, Verein für Socialpolitik, Research Committee Development Economics.
  19. Michaelowa, Katharina, 2001. "Primary Education Quality in Francophone Sub-Saharan Africa: Determinants of Learning Achievement and Efficiency Considerations," World Development, Elsevier, vol. 29(10), pages 1699-1716, October.
  20. Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series 2525, The World Bank.
  21. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer, vol. 38(1), pages 115-132, February.
  22. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
  23. Deon Filmer & Lant Pritchett, 1999. "The Effect of Household Wealth on Educational Attainment: Evidence from 35 Countries," Population and Development Review, The Population Council, Inc., vol. 25(1), pages 85-120.
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