A Household-Based Distribution-Sensitive Human Development Index: An Empirical Application to Mexico, Nicaragua and Peru
In measuring human development, one of the main concerns relates to the inclusion of a measure that penalizes inequalities in the distribution of achievements across the population. Using indicators from nationally representative household surveys and census data, this paper proposes a straightforward methodology to estimate a household-based distribution-sensitive human development index aggregated through generalized means. The evidence shows that the losses in human development due to inequality reach up 22, 29 and 57% in Mexico, Peru and Nicaragua, respectively. Among dimensions, the loss in the income index reaches up 61% in Nicaragua, while the education index appears as the most sensitive in the case of Mexico and Peru, with a percentage of loss between 38 and 48%. The importance of household-level calculations is highlighted when we compare the indices computed from the entire distribution with those existing indices computed for quintiles of the distribution, which minimizes the losses due to inequality. Overall, the estimations evidence a higher sensitivity of the index to inequality, and therefore an important space for public action to reduce inequality that could involve positive development returns. Copyright Springer Science+Business Media B.V. 2012
Volume (Year): 109 (2012)
Issue (Month): 3 (December)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/journal/11135|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Grimm, Michael & Harttgen, Kenneth & Klasen, Stephan & Misselhorn, Mark, 2008.
"A Human Development Index by Income Groups,"
Elsevier, vol. 36(12), pages 2527-2546, December.
- Michael Grimm, Kenneth Harttgen, Stephan Klasen, and Mark Misselhorn, 2006. "A Human Development Index by Income Groups," Human Development Occasional Papers (1992-2007) HDOCPA-2006-07, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
- Michael Grimm & Kenneth Harttgen & Stephan Klasen & Mark Misselhorn, 2007. "A Human Development Index by Income Groups," Ibero America Institute for Econ. Research (IAI) Discussion Papers 155, Ibero-America Institute for Economic Research.
- Misselhorn, Mark & Klasen, Stephan & Harttgen, Kenneth & Grimm, Michael, 2007. "A Human Development Index by Income Groups," Proceedings of the German Development Economics Conference, Göttingen 2007 12, Verein für Socialpolitik, Research Committee Development Economics.
- Suman Seth, 2009. "Inequality, Interactions, and Human Development," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 10(3), pages 375-396.
- Harttgen, Kenneth & Klasen, Stephan, 2012. "A Household-Based Human Development Index," World Development, Elsevier, vol. 40(5), pages 878-899.
- Harttgen, Kenneth & Klasen, Stephan, 2010. "A household-based Human Development Index," Proceedings of the German Development Economics Conference, Hannover 2010 30, Verein für Socialpolitik, Research Committee Development Economics.
- Kenneth Harttgen & Stephan Klasen, 2010. "A Household-Based Human Development Index," Human Development Research Papers (2009 to present) HDRP-2010-22, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
- François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 25-49, April.
- Bourguignon, F. & Chakravarty, S.R., 1998. "The Measurement of Multidimensional Poverty," DELTA Working Papers 98-12, DELTA (Ecole normale supérieure).
- Laurens Cherchye & Erwin Ooghe & Tom Puyenbroeck, 2008. "Robust human development rankings," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(4), pages 287-321, December.
- Laurens Cherchye & Erwin Oghe & Tom Van Puyenbroeck, 2005. "Robust human development rankings," Public Economics Working Paper Series ces0516, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
- Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- James Foster & Luis Lopez-Calva & Miguel Szekely, 2005. "Measuring the Distribution of Human Development: methodology and an application to Mexico," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 6(1), pages 5-25.
- Serge-Christophe Kolm, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 1-13. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:109:y:2012:i:3:p:395-411. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.