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The Consequences of Inequality: A New Measure of Human Development


  • Guo Xu
  • Veronika Hümmer


Marking the 20th anniversary of the Human Development Index (HDI), the United Nations Development Programme (UNDP) has published a revised measure that also accounts for inequality (IHDI). Countries subject to severe social disparities, particularly Central and South American countries, perform worse than under the classic HDI. Even if the revised measure does not yield fundamental changes in ranking, it provides new insights for policy makers and researchers alike.

Suggested Citation

  • Guo Xu & Veronika Hümmer, 2010. "The Consequences of Inequality: A New Measure of Human Development," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 6(35), pages 259-262.
  • Handle: RePEc:diw:diwwrp:wr6-35

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    More about this item


    Inequality; Human Development Index (HDI); Multidimensional Welfare Measurement;

    JEL classification:

    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions


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