Who are Your Joneses? Socio-Specific Income Inequality and Trust

Trust is a good approach to explain the functioning of markets, institutions or society as a whole. It is a key element in almost every commercial transaction over time and might be one of the main explanations of economic success and development. Trust diminishes the more we perceive others to have economically different living realities. In most of the relevant contributions, scholars have taken a macro perspective on the inequality-trust linkage, with an aggregation of both trust and inequality on a country level. However, patterns of within-country inequality and possibly influential determinants, such as perception and socioeconomic reference, remained undetected. This paper offers the opportunity to look at the interplay between inequality and trust at a more refined level. A measure of (generalized) trust emerges from ESS 5 survey which asks “...generally speaking, would you say that most people can be trusted, or that you can’t be too careful in dealing with people?”. With the use of 2009 EU-SILC data, measurements of income inequality are developed for age-specific groups of society in 22 countries. A sizable variation in inequality measures can be noticed. Even in low inequality countries, like Sweden, income imbalances within certain age groups have the potential to undermine social trust.     

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.     

Another Approach to Measuring Human Development: The Composite Dynamic Human Development Index

This paper seeks mainly to contribute to the debate on how the relative degree of development of a country should be measured by proposing an indicator to build on the valuable starting point provided by the Human Development Index (HDI). The indicator proposed is called the “Composite, Dynamic Human Development Index”. It incorporates in a simple way additional points which are significant for the current concept of human development and provides a dynamic factor that distinguishes between countries on the basis of achievements attained. It helps ensure that the static average data on which the HDI is based does not conceal wide-ranging economic, social and political differences within countries, lack of sustainability in current levels of development or effective development strategies drawn up by governments.     

A New Multidimensional Measure of Development: The Role of Technology and Institutions

This paper constructs four structural indices by using 42 socioeconomic variables for 129 countries and the 10 years period from 2003 to 2012. Each structural index can be considered as a measure of a certain dimension of development. The first two indices are the most useful in explaining gaps in development across countries. The first captures the role of technology and institutional quality while the second provides a measure of the basic level of development. The contrast between them signifies that the notion of development is not only multidimensional, but also changing with the stage of development. These two indices are combined to form a development index (DI). A comparison of DI to income per capita and the Human Development Index highlights the importance of institutions in the transition of countries from merely having high income to full development. A methodological contribution of the paper is to use a Jackknife approach within the factor analysis routine to test for the significance of the extracted factors/indices.     

Neighborhoods in Development: Human Development Index and Self-organizing Maps

The Human Development Index (HDI) has been instrumental in broadening the discussion of economic development beyond money-metric progress, in particular, by ranking a country against other countries in terms of the well being of their citizens. We propose self-organizing maps to explore similarities among countries using the components of the HDI rather than rankings. The similarities approach using the HDI components reveals information which is not available from ranking or bilateral comparisons. By illustrating clusters of countries, which we call “neighborhoods in development”, self-organizing maps draw out the potential for mutual policy learning among countries and shift the focus to discovering what kind of policies might have led countries change their position in the rankings.     

“Healthy” Human Development Indices

In the Human Development Index (HDI), life expectancy is the only indicator used in modeling the dimension ‘a long and healthy life’. Whereas life expectancy is a direct measure of quantity of life, it is only an indirect measure of healthy years lived. In this paper we attempt to remedy this omission by introducing into the HDI the morbidity indicator, “expected lost healthy years” (LHE), used in the World Health Report Though LHE is only weakly correlated with life expectancy and displays considerable variation across countries, the ranking of nations using the adjusted HDI is very similar to that from the HDI. Nevertheless, there are some outlier countries (including large countries like China and the United States) that experience notable changes in rank. Given the considerable variation in the morbidity data across gender, we also adjust the Gender-related Development Index (GDI) in a similar fashion. The ranking using the adjusted GDI is very similar to that from the GDI, but it has a lower rank correlation with the HDI.     

Three faces of international inequality

Recent studies of international inequality have focused mostly on the trend in international income inequality. This article extends the analysis of international inequality to also include inequalities in education and health. Analyses of time-series data for more than 100 countries show that international income inequality declined from 1980 to 2003 as several large, poor Asian countries outpaced many Western countries in national income growth. By contrast, international health inequality followed a U-shaped trend, falling in the 1980s before rising in the 1990s. The turnaround in health inequality coincides with a trend of declining life expectancy in sub-Saharan Africa. International educational inequality experienced the sharpest recent decline, spurred by the global expansion of formal schooling. These findings confirm that there is more to international inequality than income inequality alone and suggest that patterns of inequality in the current era of globalization are likely more complex than many leading theories suggest.     

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.     

The impact of changes in the marital status on return migration of family migrants

Many migrants have non-labour motives to migrate, and they differ substantially from labour migrants in their migration behaviour. For family migrants, the decision to return is highly influenced by changes in their marital status. Using administrative panel data on the entire population of recent family immigrants to the Netherlands, we estimate the effect of a divorce and remarriage on the hazard of leaving the Netherlands using a ‘timing of events’ model. The model allows for correlated unobserved heterogeneity across the migration, the divorce and remarriage processes. The family migrants are divided into five groups based on the Human Development Index (HDI) of their country of birth. We find that both divorce and remarriage increase return of family migrants from less-developed countries. Remarriage of family migrants from developed countries makes them more prone to stay. Young migrants are influenced most by a divorce. The impact of the timing of a divorce and remarriage on return is quantified graphically.     

An Assessment of the Measurement Properties of the Human Development Index

One of the more important determinants of the competitiveness of a nation is the quality of its human capital. The Human Development Index (HDI) is the most widely used yardstick of human development. It measures human development for all the countries of the world, through the use of three factors – longevity, knowledge and GDP measured in purchasing power. This paper evaluates HDI's contribution towards measuring the quality of the human capital component of a nation's competitiveness. Two primary issues under study are the HDI's information properties vis-a-vis its components and its measurement properties as an index. The primary conclusion of the study is that the HDI carries useful information about a country's current development, but not about the future level of development. Hence, further refinements in its construction as well as additional theoretical support as a quantitative measure are needed.     

National Income and Income Inequality,Family Affluence and Life Satisfaction Among 13 year Old Boys and Girls: A Multilevel Study in 35 Countries

Adolescence is a critical period where many patterns of health and health behaviour are formed. The objective of this study was to investigate cross-national variation in the relationship between family affluence and adolescent life satisfaction, and the impact of national income and income inequality on this relationship. Data from the 2006 Health Behaviour in School-aged Children: WHO collaborative Study (N = 58,352 across 35 countries) were analysed using multilevel linear and logistic regression analyses for outcome measures life satisfaction score and binary high/low life satisfaction. National income and income inequality were associated with aggregated life satisfaction score and prevalence of high life satisfaction. Within-country socioeconomic inequalities in life satisfaction existed even after adjustment for family structure. This relationship was curvilinear and varied cross-nationally. Socioeconomic inequalities were greatest in poor countries and in countries with unequal income distribution. GDP (PPP US$) and Gini did not explain between country variance in socioeconomic inequalities in life satisfaction. The existence of, and variation in, within-country socioeconomic inequalities in adolescent life satisfaction highlights the importance of identifying and addressing mediating factors during this life stage.     

Values Reflected in the Human Development Index

The Human Development Index (HDI) implicitly defines ``human development' and ranks countries accordingly. To elucidate the HDI's meaning of ``human development,' the paper examines the sensitivity of the HDI to changes in its components, namely social indicators of education, longevity and standard of living. The HDI is next compared with two alternatives, the Life Quality Index (LQI) and a Time Allocation Index (TAI) developed in this paper from the HDI's components. Also considered is the likely uncertainly in the HDI and what it means for HDI rankings.It is concluded that the HDI's weighting of the gross domestic product is in good agreement with peoples' preferences as revealed in the LQI and the TAI; further, that the HDI places many times greater weight on education than is indicated by peoples' allocation of time in developed countries. Literacy is accorded very high weight in the HDI, but its measure is unreliable. The HDI ranking of highly developed nations is so close and so uncertain that it is meaningless.     

Social and Economic Wellbeing in Europe and the Mediterranean Basin: Building an Enlarged Human Development Indicator

This paper calculates a human Wellbeing Composite Index (WCI) for 42 countries, belonging to the European Economic Space, North Africa and the Middle East, as an alternative to the shortcomings of other well-known measures of socio-economic development (i.e. Gross Domestic Product per head and Human Development Index). To attain this goal, different data envelopment analysis (DEA) models are used as an aggregation tool for seven selected socio-economic variables which correspond to the following wellbeing dimensions: income per capita, environmental burden of disease, income inequality, gender gap, education, life expectancy at birth and government effectiveness. The use of DEA allows avoiding the subjectivity that would be involved in the exogenous determination of weights for the variables included in WCI. The aim is to establish a complete ranking of all countries in the sample, using a three-step process, with the last step consisting in the use of a model that combines DEA and compromise programming, and permits to obtain a set of common weights for all countries in the analysis. The results highlight the distance that still separates Southern Mediterranean countries from the benchmark levels established by some European countries, and also point to the main weaknesses in individual countries’ performance. Nordic countries, plus Switzerland, top the list of best performers, while Mauritania, Libya and Syria appear at the bottom.     

Food Access and Shocks in Rural Households: Evidence from Bangladesh and Ethiopia

As remarked by Ravallion (J Dev Econ 99:201–209, 2012), the recent switch from arithmetic to geometric mean in the aggregation of the United Nations’ Human Development Index has caused a more severe inequality penalization of the index for less developed countries, with outlying consequences. We clarify and explain this fact and propose an aggregation function, the Trichotomy Mean, that depends on two parameters: one regulates the overall penalization of disequilibria (among or within dimensions) in analogy with Atkinson’s inequality aversion parameter for power means; the other modulates the Level Dependence of the Adjustment, a novel concept describing the behavior—decreasing, increasing, or constant—of penalization of given disequilibria for increasing index level. Unlike the geometric mean (which, incidentally, has decreasing LDA type), the TM remains valid for zero or negative—and does not distort for small positive—values of the input variables, thus permitting less restrictive raw-variable normalizations and to overcome the need for exogenous lower bounds. We compare the three versions of TM with the geometric mean in an empirical analysis on the HDI 2014 data. We finally illustrate the contributions of the TM to the development literature debate.     

The Multidimensional Gender Inequalities Index (MGII): A Descriptive Analysis of Gender Inequalities Using MCA

This paper constructs a weighted measure of the multidimensional concept of gender inequality: the Multidimensional Gender Inequality Index (MGII). Multiple Correspondence Analysis is used to rank the separate forms in which gender inequality appears in developed and developing countries respectively. Eight dimensions were identified as relevant for economic purposes: identity, physical integrity, intra-family laws, political activity, education, health, access to economic resources, and economic activity. In the 109 developing countries considered, gender inequality in the identity and family dimensions are particularly severe for women: these dimensions hence have greater weight in the MGII. However, in OECD countries gender inequality occurs mainly in the political and family dimensions. Nevertheless, the family sphere remains particularly important for gender inequality, whatever the level of development. The MGII is a non-linear weighted composite indicator of gender inequality which yields a country ranking. The South-Asian region is calculated to be the most unequal.     

基于因子分析法的我国区域人类发展实证研究

本文介绍并引进了以因子分析法为基础构建的人类发展指数(HDI)。通过指标体系的构建、评估方法的选择及与联合国开发计划署制订的人类发展指数比较发现,基于因子分析法的人类发展指数较之传统的方法更适合测算与度量我国区域人类发展水平。     

受教育程度与城镇居民收入不平等—基于基尼系数的分解研究

基于2008年中国综合社会调查的数据,本文运用基尼系数分解的方法研究城镇居民受教育程度对收入不平等的影响。基于回归的不平等分解研究发现受教育程度是导致城镇居民职业收入不平等的最主要因素。对基尼系数的亚组分解研究发现受教育程度不同的人群之闻的收入不平等对总体收入不平等的贡献率为8.65％,城镇居民职业收入不平等主要表现为各个受教育程度人群内部的收入不平等。分地区来看,中西部地区受教育程度较低的人群其组内差距的贡献率要远高于东部地区。实证研究的结果表明,提供平等的受教育机会、缩小受教育程度的不平等、加大对中西部地区义务教育的投入可以有效缩小收入不平等。     

Patterns of Human Development Indicators Across Constitutional Analysis of Children’s Rights to Protection, Provision, and Participation

This study examines children’s images in constitutions and/or amendments as articulated in the Convention on the Rights of the Child while they intersect with the three dimensions of the Human Development Index (HDI) of 2008: life expectancy, educational index, and GDP. The connection between the images of the child and the fulfillment of the dimensions within countries represents the current childhood conditions and determines their future wellbeing. It is the interdependency of the elements of HDI and the premises of the CRC that potentially impact nation-state’s developmental outcome with the process of rights. This study highlights the strength of the connection among the dimensions, and emphasizes the importance of considering children as vital to dialogue around human rights and a human development agenda.     

Composite Indices of Development and Poverty: An Application to MDGs

The measurement of development or poverty as multidimensional phenomena is very difficult because there are several theoretical, methodological and empirical problems involved. The literature of composite indicators offers a wide variety of aggregation methods, all with their pros and cons. In this paper, we propose a new, alternative composite index denoted as MPI (Mazziotta-Pareto Index) which, starting from a linear aggregation, introduces penalties for the countries or geographical areas with ‘unbalanced’ values of the indicators. As an example of application of the MPI, we consider a set of indicators in order to measure the Millennium Development Goals (MDGs) and we present a comparison between HDI (Human Development Index) methodology, HPI (Human Poverty Index) methodology and MPI.     

人类发展指数的解析及应用——基于山西省各地市的测算与比较

人类发展指数用于衡量一个国家或地区在人类发展的健康长寿、文化教育和生活水平方面所取得的成就,属于目前国际上较为流行与通用的指标之一。本文借鉴联合国人类发展指数的编制方法,将人类发展指数作为评价和谐社会发展的主要依据。首次对山西省各地市人类社会的发展状况进行测算和比较,弥补了山西各地市人类发展量化研究的历史空白。经过比较分析,发现经济基础、资源禀赋、地理区位、城市化水平、城乡收入差距是导致山西各地市人类社会发展不平衡的主要原因。山西省政府应该充分发挥其在人类发展过程中的调控作用,将人类发展指数纳入全面考察地方经济社会发展状况的指标体系,增加公共健康和医疗卫生的投入,促进教育质量的不断提高,缩小城乡差距,加速城镇化发展最终达到经济社会的和谐发展。