Definition
- Living standards
- The living standards dimension measures command over resources, using gross national income per head at purchasing power parity, which adjusts for what money buys in each country.
Example
Can you think of an example of living standards?
A haircut costs far less in Delhi than in London. Converting income at purchasing power parity counts what that income buys at local prices.
Test yourself
Can you name the three dimensions of the Human Development Index?