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A Human Development Index by Income Groups

One of the most frequent critiques of the HDI is that is does not take into account inequality within countries in its three dimensions. 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 to compare the level in human development of the poor with the level of the non-poor within countries, but also across countries. An empirical illustration for a sample of 13 low and middle income countries and 2 industrialized countries shows that inequality in human development within countries is indeed high. The results also show that the level of inequality is only weakly correlated with the level of human development itself.

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Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 155.

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Length: 35 pages
Date of creation: 09 Jan 2007
Date of revision:
Handle: RePEc:got:iaidps:155
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  1. 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.
  2. Bidani, Benu & Ravallion, Martin, 1997. "Decomposing social indicators using distributional data," Journal of Econometrics, Elsevier, vol. 77(1), pages 125-139, March.
  3. 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.
  4. 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.
  5. 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..
  6. 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.
  7. M. Ruth & K. Donaghy & P. Kirshen, 2006. "Introduction," Chapters, in: Regional Climate Change and Variability, chapter 1 Edward Elgar.
  8. 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.
  9. Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
  10. 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.
  11. 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.
  12. Gustav Ranis, Frances Stewart and Emma Samman, . "Human Development: beyond the HDI," QEH Working Papers qehwps135, Queen Elizabeth House, University of Oxford.
  13. 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.
  14. Gustav Ranis & Frances Stewart & Emma Samman, 2005. "Human Development: Beyond the HDI," Working Papers 916, Economic Growth Center, Yale University.
  15. 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.
  16. 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.
  17. 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.
  18. 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.
  19. Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series 2525, The World Bank.
  20. Angus Deaton, 2005. "Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 1-19, February.
  21. Sagar, Ambuj D. & Najam, Adil, 1998. "The human development index: a critical review," Ecological Economics, Elsevier, vol. 25(3), pages 249-264, June.
  22. repec:sae:ecolab:v:16:y:2006:i:2:p:1-2 is not listed on IDEAS
  23. 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.
  24. Stephan Klasen, 2006. "Guest Editor's Introduction," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 7(2), pages 145-159.
  25. Ravallion, Martin, 1997. "Good and bad growth: The human development reports," World Development, Elsevier, vol. 25(5), pages 631-638, May.
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