A Simple Measure of Human Development: The Human Life Indicator
A Simple Measure of Human Development: The Human Life Indicator
SIMONE GHISLANDI
WARREN C. SANDERSON
SERGEI SCHERBOV
P O P U L AT I O N A N D D E V E L O P M E N T R E V I E W 0 ( 0 ) : 1 – 1 5 ( X X X 2 0 1 8 ) 1
C 2018 The Authors. Population and Development Review published by Wiley Periodicals, Inc
This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution
and reproduction in any medium, provided the original work is properly cited.
2 THE HUMAN LIFE INDICATOR
published. Despite its success, the methodology of the HDI has been widely
criticized (see, for example, Kelley 1991; McGillivray 1991; Dasgupta and
Weale 1992; Castles 1998; Sagar and Najam 1998; Booysen 2002; Lutz and
Goujon 2004; Kovacevic 2011; Wolff, Chong, and Auffhammer 2011). This
is not surprising since its construction involves a series of assumptions re-
garding weighting, functional forms, and the selection of the policy compo-
nents. In some cases, criticisms and debates have helped improve the index.
Nevertheless, some limitations of the HDI remain. We focus on four of them
here: (1) measurement errors in its components, with the economic com-
ponent having the greatest measurement error, (2) historical inconsistency,
(3) unjustified trade-offs across its components, and (4) the correlation of
its components.
FIGURE 1 Value of one additional year of life as percent of GNI per capita
(VAY), as implied by UNDP (2005, 2010, 2014)
NOTES: Value of one additional year of life as a percent of income per capita (VAY). The value of one
additional year of life is the reduction in per capita income required to keep the HDI constant when life
expectancy at birth is increased by one year. All HDI countries. HDI formulas used in 2005, 2010, and 2014.
Horizontal axis: Log of GNI per capita. Lines show polynomial fits. For 2005, the line is horizontal since the
VAY is constant at about 0.1. Data are from UNDP (2016a).
ones (Haiti and Senegal). Changes that would keep the value of the HDI
constant include increasing life expectancy at birth in Austria by one year
and decreasing Austria’s GNI per capita by 9.3 percent. The decreases in GNI
per capita that keep HDI constant when life expectancy at birth increases by
one year are 8.6 percent for Italy, 6.3 percent for Senegal, and 6.2 percent
for Haiti.
Table 1 shows other examples of these trade-offs. The reductions in
GNI per capita that keep the HDI constant when the mean years of schooling
are increased by one year are large. In Austria, the reduction is 21.2 percent
of GNI per capita. The decrease in GNI per capita in Italy is 20.4 percent, in
Senegal 23.3 percent, and in Haiti 18.4 percent. In particular, Senegal had
mean years of schooling of 2.8. Its value of the HDI would be the same if
it increased it to 3.8 and reduced its GNI by almost one-quarter. In Austria,
a reduction in GNI per capita of 21.2 percent would be counterbalanced by
an increase in the mean years of schooling of one year, from 11.3 to 12.3.
Are all these country-specific trade-off values really meaningful?
S I M O N E G H I S L A N D I / W A R R E N C. S A N D E R S O N / S E R G E I S C H E R B O V 5
Senegal Haiti
(HDI = 0.495) (HDI = 0.493)
HDI Components LE MYS EYS GNI/POP LE MYS EYS GNI/POP
66.9 2.8 9.5 2,250 63.1 5.2 9.1 1,657
Trade-offs (HDI constant)
Trade-off 1 + 1 yr –23.3% + 1 yr –18.4%
Trade-off 2 –4 yr + 1 yr –3.1 yr + 1 yr
Trade-off 3 +1 yr –20.1% +1 yr –15.8%
Trade-off 4 –3.4 yr +1yr –2.6 yr +1yr
SOURCE: UNDP 2016b and authors’ calculations.
NOTES: HDI components and changes in them that keep HDI constant. HDI = Human Development Index.
LE = Life Expectancy. MYS = Mean Years of Schooling; EYS = Expected Years of Schooling; GNI/POP = Per
Capita GNI.
comparisons across time. This is true also for the measurement of human
development.
Life expectancy represents a good candidate for this purpose. Since it
is one of the three components included in the HDI, this strategy would
require dropping education and GNI per capita. This would be problematic
only to the extent that relevant information is lost. However, the strong
correlation among the components reduces significantly the related infor-
mation loss.
The use of the sole health component of human development instead
of a composite index helps to answer some of the more technical criticisms
of the HDI defined above, since:
(1) It does not depend on any trade-off, implying that the economic and
schooling components matter only to the extent that they can influence
life conditions and mortality. Note that this does not imply that income
and education are not important. Rather, an increase in the economic
and educational levels of a country should be considered as relevant
only when they translate into an improved life-span for individuals.
This view is consistent with the approach to development based on the
idea that we should be seeing “incomes and commodities” not as some-
thing that “people have reason to value intrinsically,” but rather as “in-
struments,” i.e., as “means to other ends,” this end being a good and
long life (Sen 1998). Sen explicitly suggests that mortality should be
considered as an indicator of economic success and failure (Sen 1998).
(2) Its measurement errors are smaller than the ones associated with ed-
ucation and income. The measurement errors for the three indicators
of the HDI as reported by Wolff, Chong, and Auffhammer (2011) show
that, although uncertainty exists for all the indicators, life expectancy
is the least error-prone among the three (see Appendix Figure B1).
(3) It is built on data that are more clearly comparable across countries
and times. Mortality data allow researchers to provide a much more
consistent picture of development patterns at country levels, both geo-
graphically and historically.
expectancy at birth. Our measure, called the Human Life Indicator (HLI), is
the geometric average of those lifetimes:
N
HLI = (agei + ai )di
i=1
where agei is the age at the lower end of the age interval i in a life ta-
ble, ai is the average number of years lived in the interval by those who
die in the interval, di is the fraction of deaths in age interval i among all
deaths, and N is the number of age intervals in the life table.
The use of the geometric mean penalizes countries that have a rel-
atively high variation in the length of lives. In particular, if two coun-
tries had the same life expectancy at birth, the country with the lower
infant and child mortality rates would generally have the higher HLI. In-
fant and child mortality rates are highly correlated with education across
countries and time periods, so using the HLI reduces the information lost
by not explicitly including education. More generally, the HLI explicitly
treats the reduction in the inequality in lifetimes as an additional con-
tributor to the improvement in human development. If everyone in the
population lived the same number of years (implying, in particular, a
zero child mortality rate), the HLI and the life expectancy at birth would
coincide.
Table 2 shows the correlations among the HLI, the HDI, gross national
income per capita (GNI per capita), expected years of schooling (EYS), and
mean years of schooling (MYS). Although the HLI is much simpler than the
HDI, the correlation between the two is 0.93. The observation that the HLI,
which is based on a single indicator, is so closely correlated with the HDI
reflects the extent of redundancy in the HDI indicators. Table 2 also shows
that the HLI is closely correlated to the two schooling variables. The effects
of education are reflected in the HLI, even though the schooling variables
are not explicitly included in it.
8 THE HUMAN LIFE INDICATOR
SOURCE: UN 2017.
NOTE: HLI = Human Life Indicator.
SOURCE: UC Berkeley, and Max Planck Institute for Demographic Research 2017.
NOTE: HLI = Human Life Indicator.
10 THE HUMAN LIFE INDICATOR
history. This growth slowed down earlier (during the 1960s) only for Russia,
which has experienced a stall in the growth of the HLI ever since. Steady
growth patterns in the HLI are noticeable in other countries around the
world. For example, the HLIs in Brazil, Chile, and Ecuador have all been
constantly growing since the 1950s (see Appendix Figures B2 and B3). In
Asia, the HLI reflects the impact of some dramatic historic events, such as
the Vietnam War and the Pol-Pot dictatorship in Cambodia.
TABLE 3 HLI for Indian states in different years, urban and rural
Urban Rural
State 2011–15 2007–11 Difference 2011–15 2007–11 Difference
Andhra Pradesh 62.91 59.04 3.86 54.86 49.32 5.53
Assam 62.33 56.83 5.51 47.67 43.99 3.68
Bihar 60.42 56.47 3.95 55.22 50.49 4.73
Chhattisgarh 57.15 n.d. n.d. 50.64 n.d. n.d.
Delhi 65.83 n.d. n.d. 60.95 n.d. n.d.
Gujarat 61.30 58.52 2.78 51.36 47.85 3.51
Haryana 59.05 55.19 3.86 53.50 49.00 4.51
Himachal Pradesh 66.95 63.70 3.25 58.10 56.06 2.04
India 61.93 58.27 3.66 52.59 48.51 4.08
Jammu & Kashmir 64.30 60.74 3.55 57.43 54.43 3.01
Jharkhand 62.12 n.d. n.d. 53.31 n.d. n.d.
Karnataka 63.17 60.27 2.90 56.04 51.13 4.91
Kerala 70.37 69.88 0.49 69.35 68.61 0.74
Madhya Pradesh 57.21 53.49 3.72 45.63 41.28 4.35
Maharashtra 67.66 63.83 3.83 61.28 57.66 3.62
Odisha 60.52 54.11 6.41 50.32 44.18 6.14
Punjab 65.53 60.77 4.77 59.62 54.61 5.01
Rajasthan 58.39 55.57 2.82 50.05 45.79 4.25
Tamil Nadu 65.33 61.95 3.38 60.84 57.51 3.33
Uttar Pradesh 53.15 49.66 3.48 46.04 42.88 3.16
Uttarakhand 63.57 n.d. n.d. 59.70 n.d. n.d.
West Bengal 64.59 61.68 2.91 58.81 56.56 2.26
SOURCE: Government of India 2018 and authors’ computations.
NOTES: Human Life Indicator (HLI) in urban areas of states for which Sample Registration System (SRS) life
tables are available, 2007–11 and 2011–15. “n.d.” indicates that no data were available to make the calculation
of HLI. States are listed in order of their HLIs in 2011–15. Figures are rounded independently.
the urban and rural areas were faster than those in India as a whole. In
Assam, on the other hand, the urban HLI grew faster than the all-India ur-
ban HLI, while the rural HLI grew more slowly than the all-India rural HLI.
Observations such as these can potentially be useful in assessing the sus-
tainable development goal of reducing regional inequalities.
Concluding remarks
No measure of the progress of human development is perfect. Different in-
dices provide different perspectives. The HLI is simpler than the HDI and
because of this does not presume contentious trade-offs between the com-
ponents of human development. Even though it is simpler, the correlation
between the HLI and the HDI is rather high (0.93). The HLI does not explic-
itly include an economic component. In theory, this is a disadvantage, but
in practice, it might not be. GNI per capita measured in purchasing power
parity has been subject to large revisions each time new benchmark figures
have been published. Moreover, there is a great deal of redundancy in the
12 THE HUMAN LIFE INDICATOR
Note
The research leading to these results has re- els so that equivalent amounts of currency
ceived funding from the European Research would be able to buy an equivalent bun-
Council under the European Union’s Sev- dle of goods. For example, if, according to
enth Framework Programme (FP7/2007- PPP calculations, 1 unit of currency in coun-
2013)/ERC Grant Agreement No. ERC2012- try A was the equivalent of 5 units of cur-
AdG 323947-Re-Ageing. The underly- rency in country B, then a person with 1
ing data for this study is available at unit of currency in country A and a per-
www.iiasa.ac.at/pop/HLI. son with 5 units of currency in country B
1 Purchasing power parity (PPP) is a should be able to buy the same amount of
method of adjusting the relative price lev- goods.
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14 THE HUMAN LIFE INDICATOR
APPENDIX A
The Changing Definition of the HDI
APPENDIX B
Additional Evidence
NOTES: Coefficients of variation (CV) for an index for country i: σ i/μi, where σ is the standard error of the
country-specific measurement error, and μ is the country-specific mean. Countries are ordered according to
their Human Development Index (HDI). Measurement errors are from Wolff, Chong, and Auffhammer (2011).
The graph shows that measurement errors generally decrease for countries with higher HDI, and that life
expectancy is associated with lower measurement errors, especially for high HDI countries.
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