Inequality in Human Development across the Globe

The Human Development Index is the world's most famous indicator of the level of development of societies. A disadvantage of this index is however that only national values are available, whereas within many countries huge subnational variation in development exists. We therefore have developed the Subnational Human Development Index (SHDI), which shows within-country variation in human development across the globe. Covering more than 1,600 regions within 161 countries, the SHDI and its underlying dimension indices provide a 10 times higher resolution picture of human development than previously available. The newly observed within-country variation is particularly strong in low- and middle-developed countries. Education disparities explain most SHDI inequality within low-developed countries, and standard of living differences are most important within the more highly developed ones. Strong convergence forces operating both across and within countries have compensated the inequality enhancing force of population growth. These changes will shape the twenty-first century agenda of scientists and policy-makers concerned with global distributive justice.     

The Importance of Variables in Composite Indices: A Contribution to the Methodology and Application to Development Indices

The paper examines the issue of weights and importance in composite indices of development. Building a composite index involves several steps, one of them being the weighting of variables. The nominal weight assigned to a variable often differs from the degree to which the variable affects the scores of the overall index. The newly suggested notion of importance is based on the idea that an important indicator, if omitted from the index, causes large changes in countries’ results. We propose a method of measuring the importance and apply it to inequality variables in composite indices of development. The results show a low importance for most inequality variables, and for some of them, a large discrepancy between the nominal weights and the importance. We argue that the importance of variables should be considered in the process of index construction. This may imply a modification of the index when there is a large discrepancy between the nominal weights and importance and when the importance of some variables is extremely low. Whether any such modification is justified must be decided within the context of the particular index.

     

The Variance as a subgroup decomposable measure of inequality

An inequality index is called subgroup decomposable if it can be expressed as a weighted sum of inequality values calculated for population subgroups plus the contribution arising out of differences among subgroup means. Theil (1967) and Shorrocks (1980) pointed out two important requirements for subgroup decomposable inequality indices. Shorrocks (1980) has shown that Theil's mean logarithmic deviation, for which the weights of subgroup terms are respective population shares, is the only relative inequality index that fulfils these two properties. In this paper we show that the variance is the only absolute inequality index to satisfy the population share weighted subgroup decomposability property, which in turn implies that it also meets the two properties suggested by Theil and Shorrocks. A numerical illustration of several inequality indices in also presented in the paper. JEL classification numbers:D31, D63.     

The Measurement of Non-economic Inequality in Well-Being Indices

This paper is a critical review of composite well-being indices that account for inequality. Many well-being indices build upon the idea that while income and wealth are important, they do not constitute a person’s actual quality of life. However, first of all, the analysis finds that while well-being indices aim to go “beyond GDP” and other primarily economic indicators, many of them, unfortunately, do not focus on inequality at all. Secondly, most indices which include inequality in their measurement, only account for economic inequality. Thirdly, the article finds that the most comprehensive wellbeing index in terms of inequality is the Inequality-adjusted Human Development Index which adjusts for economic, health and education inequality. This article finds that well-being indices should make further strides to ensure the capture of non-economic inequality in terms of education and health.     

基于二阶段嵌套锡尔系数的人口分布的差异研究

文章首先提出了人口分布锡尔系数的概念及其一阶、二阶分解方法,接着以江苏省为研究区域,基于三大地带（苏南、苏中和苏北）、13个地级市、106个县（县级市、市辖区）三级结构的地域行政单元,分别运用一次、二次分解对全省的人口分布的区域差异进行细分测度．将江苏省人口分布的差异性分解为苏南、苏中、苏北三大地带闯的差异、三大地带内地级市之间的差异以及各地级市的内部差异三部分。其主要结论为：以地级市为计算单元的一阶段分解结果显示．苏南、苏中和苏北三个地带间人口分布的差异性是造成一阶段分解的全省人口分布差异的主要原因;以县级行政单元的二阶段分解结果表明．地级市内部的差异是江苏省人口分布的整体差异的主要构成部分;通过运用局部G统计量对各县级单元人口分布的热点探测发现,“热点”地区的人口分布差异性大．“冷点”地区的差异性小．     

Testing the relationship between income inequality and life expectancy: a simple correction for the aggregation effect when using aggregated data

In this paper, we show a simple correction for the aggregation effect when testing the relationship between income inequality and life expectancy using aggregated data. While there is evidence for a negative correlation between income inequality and a population’s average life expectancy, it is not clear whether this is due to an aggregation effect based on a non-linear relationship between income and life expectancy or to income inequality being a health hazard in itself. The proposed correction method is general and independent of measures of income inequality, functional form assumptions of the health production function, and assumptions on the income distribution. We apply it to data from the Human Development Report and find that the relationship between income inequality and life expectancy can be explained entirely by the aggregation effect. Hence, there is no evidence that income inequality itself is a health hazard.     

孟加拉国人口分布研究

孟加拉国各省、区的人口分布存在着不均衡的特点,采取定量分析的方法,选取人口密度指数、胡佛指数和非均质性指数(index of concentration,Hoover’s index and in-homogeneity index)指标来分析孟加拉国人口分布现有的不平等程度和非均质性。研究结果表明,孟加拉国各省、区的人口集中都存在增加的趋势。同时,通过对斯皮尔曼等级相关系数(Spearman’s rank correlation coefficient)的计算,分析孟加拉国的各地区土地面积和人口密度的关系,发现二者之间存在着较大的负相关关系。     

Regional disparities in Indonesia: A social indicators approach

The paper examines the nature of regional imbalance in Indonesia by using a number of social indicators. Several disaggregated social indices are constructed with the help of a taxonomic technique. For the purpose of comparison, an overall economic index is also constructed. It is observed that the ranking of provinces differ substantially across the indices, implying that there is no causal relationship between the selected social and economic indicators. Regional disparities declined in the past decade in terms of all social indices except the demographic index. Economic inequality nowever increased between 1970 and 1980.     

The Resource-Infrastructure-Environment Index for Measuring Progress: An Application to Australia, Mexico and the US

The resource-infrastructure-environment (RIE) index was proposed as an alternative measure of progress which was then employed to: (1) compare the aggregate (single summary) index findings between Australia (mid-industrialised nation), Mexico (emerging economy), and the US (highly industrialised nation); and (2) compare the RIE index against the gross domestic product (GDP), human development index (HDI) and genuine savings (GS) measure. This paper builds on the previous work by assessing the seven themes and 21 dimensions which comprise the RIE index for the three aforementioned nations, as well as the associated policy implications. The results identified Australia’s strength in the human resource and infrastructure themes. For Mexico, strong contributions came from the natural and generated resource themes as well as the physical environment theme, while the US performed strongly in the infrastructure themes. The comparative results of the US and Mexico illustrated that it is possible to achieve high levels of progress without an excessive reliance on high levels of production and income.     

Horizontal and Vertical Inequality: Some Interconnections and Indicators

This note is concerned with presenting some simple indices of group-wise relative disadvantage in the distribution of income, in terms of the distance between the group’s share in total population and its share in total income. The group-wise indices are then aggregated into society-wide indices of inter-group disparity. Empirical illustrations of the note’s measurement concerns are provided, using data on the global distribution of income. The measures of horizontal inequality are shown to lead to corresponding measures of vertical inequality, in the special case in which the grouping resorted to is ‘individualistic’.     

The coefficient of variation: Weighting considerations

Some background notes on inequality indices are presented. Equality is seen not as a distribution in which each cell receives an equal share of a resource but as one in which each share is proportional to a criterion or weighting variable for the cell. Instances are noted where the coefficient of variation has been calculated without full consideration of the weighting variable. This can result in misleading comparisons between distributions. A specially constructed data set illustrates that an unweighted coefficient of variation fails to satisfy the Pigou-Dalton principle of transfers and is therefore invalid as an inequality index.     

Community-Wide Job Loss and Teenage Fertility: Evidence From North Carolina

Using North Carolina data for the period 1990–2010, we estimate the effects of economic downturns on the birthrates of 15- to 19-year-olds, using county-level business closings and layoffs as a plausibly exogenous source of variation in the strength of the local economy. We find little effect of job losses on the white teen birthrate. For black teens, however, job losses to 1 % of the working-age population decrease the birthrate by around 2 %. Birth declines start five months after the job loss and then last for more than one year. Linking the timing of job losses and conceptions suggests that black teen births decline because of increased terminations and perhaps also because of changes in prepregnancy behaviors. National data on risk behaviors also provide evidence that black teens reduce sexual activity and increase contraception use in response to job losses. Job losses seven to nine months after conception do not affect teen birthrates, indicating that teens do not anticipate job losses and lending confidence that job losses are “shocks” that can be viewed as quasi-experimental variation. We also find evidence that relatively advantaged black teens disproportionately abort after job losses, implying that the average child born to a black teen in the wake of job loss is relatively more disadvantaged.     

Does Financial Inclusion Diminish Poverty and Inequality? A Panel Data Analysis for Latin American Countries

Despite great developmental efforts in recent decades, Latin America still presents high levels of poverty and inequality when compared to developed nations. As explored widely in the literature, one potential instrument to diminish these issues is financial inclusion, including the access and usage of financial services by all people. Specifically, this paper verifies if financial inclusion and technology adoption decrease the poverty headcount ratio and the Gini index (i.e., inequality) of 13 Latin America countries (Argentina, Bolivia, Brazil, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Panama, Paraguay, Peru, and Uruguay). To perform such analysis, an unbalanced panel dataset was built, and the Feasible Generalized Least Squares (FGLS) and the Limited Information Maximum Likelihood (LIML) techniques were employed. The results suggest that, in accordance with previous studies, financial inclusion is a powerful tool to tackle poverty and inequality. Additionally, the combined effects of financial inclusions and technology (i.e., mobile use) are also capable of decreasing the poverty and inequality levels. We discuss the policy implications of our findings and suggest a future research agenda.

     

Assessing Changes in Household Socioeconomic Status in Rural South Africa, 2001–2013: A Distributional Analysis Using Household Asset Indicators

Understanding the distribution of socioeconomic status (SES) and its temporal dynamics within a population is critical to ensure that policies and interventions adequately and equitably contribute to the well-being and life chances of all individuals. This study assesses the dynamics of SES in a typical rural South African setting over the period 2001–2013 using data on household assets from the Agincourt Health and Demographic Surveillance System. Three SES indices, an absolute index, principal component analysis index and multiple correspondence analysis index, are constructed from the household asset indicators. Relative distribution methods are then applied to the indices to assess changes over time in the distribution of SES with special focus on location and shape shifts. Results show that the proportion of households that own assets associated with greater modern wealth has substantially increased over time. In addition, relative distributions in all three indices show that the median SES index value has shifted up and the distribution has become less polarized and is converging towards the middle. However, the convergence is larger from the upper tail than from the lower tail, which suggests that the improvement in SES has been slower for poorer households. The results also show persistent ethnic differences in SES with households of former Mozambican refugees being at a disadvantage. From a methodological perspective, the study findings demonstrate the comparability of the easy-to-compute absolute index to other SES indices constructed using more advanced statistical techniques in assessing household SES.     

From Bucharest to Mexico: a decade of changing perceptions

The 2nd International Conference on Population held in Mexico City in 1984 had 3 main objectives: 1) to adopt the plan to changing demographic situations, 2) to enlarge the plan's scope so it can consider new views that have emerged since Bucharest, and 3) to reinforce the plan's operational aspects so that the plan can be applied more effectively. The Mexico conference had significant differences with the Bucharest gathering: 1) greater participation of developing countries, 2) clarification of the role of population and family planning in development, and 3) recognition of the status of women in development. Governments of many developing countries argue that they cannot wait for their countries to modernize sufficiently enough to stabilize their population levels. Participants in the Mexico conference agreed that family planning programs have been successful in reducing fertility at relatively low cost. The goal of a development-oriented population policy is to improve the people's standard of living by lowering fertility rates, improving health conditions and life expectancy, improving population distribution, and adopting sound economic policies. The overall objective of population policy should not be confined only to growth, distribution, and other demographic aspects; it is imperative that human life and human dignity be upheld.     

Inequality in Human Development: An Empirical Assessment of 32 Countries

One of the most frequent critiques of the HDI is that is does not take into account inequality within countries in its three dimensions. In this paper, we apply a simply approach to compute the three components and the overall HDI for quintiles of the income distribution. This allows a comparison of the level in human development of the poor with the level of the non-poor within countries, but also across countries. This is an application of the method presented in Grimm et al. (World Development 36(12):2527–2546, 2008) to a sample of 21 low and middle income countries and 11 industrialized countries. In particular the inclusion of the industrialized countries, which were not included in the previous work, implies to deal with a number of additional challenges, which we outline in this paper. Our results show that inequality in human development within countries is high, both in developed and industrialized countries. In fact, the HDI of the lowest quintiles in industrialized countries is often below the HDI of the richest quintile in many middle income countries. We also find, however, a strong overall negative correlation between the level of human development and inequality in human development.     

Income Inequality Indices Interpreted as Measures of Relative Deprivation/Satisfaction

This paper considers different ways of making comparisons between individuals in terms of deprivation and/or satisfaction. This allows the Gini index, the Bonferroni index and the De Vergottini index to be interpreted as social deprivation measures as well as social satisfaction measures. The inequality measures that belong to the ?? family, or linear combinations of them, are obtained when using different weighting schemes to average the deprivation and satisfaction associated with each income level. Particularly, the generalised Gini indices (Yitzhaki, Int Econ Rev 24:617?C628 in 1983), the indices proposed by Aaberge (J Econ Inequal 5(3):305?C322, 2007) or those proposed by Imedio-Olmedo et al. (J Public Econ Theory 13(1):97?C124, 2011) can be used to evaluate social deprivation or social satisfaction in an income distribution.     

Income inequality and self-rated health status: Evidence from the european community household panel

We examine the effect of income inequality on individualś self-rated health status in a pooled sample of 11 countries, using longitudinal data from the European Community Household Panel survey. Taking advantage of the longitudinal and cross-national nature of our data, and carefully modeling the self-reported health information, we avoid several of the pitfalls suffered by earlier studies on this topic. We calculate income inequality indices measured at two standard levels of geography (NUTS-0 and NUTS-1) and find consistent evidence that income inequality is negatively related to self-rated health status in the European Union for both men and women, particularly when measured at national level. However, despite its statistical significance, the magnitude of the impact of inequality on health is very small.     

Using census data to investigate trends in the distribution of education among individual persons

The Lorenz curve and the Gini coefficient of concentration are used as inequality indices to investigate trends in the distribution of years of schooling among individuals in Papua New Guinea. A useful technique is shown whereby, with suitably detailed census data, inferences can be made regarding inequality trends in education for the period from about forty to about ten years before the census. Educational inequality in Papua New Guinea is shown to have declined from about 1940 to about 1968. Non-census enrolment data from 1972 to 1983 indicate that this trend towards less inequality is not likely to have continued into the 1970s and 1980s, reflecting the emphasis in Papua New Guinea on post-primary expansion rather than primary expansion.