- Standard of living
- The standard of living includes all the elements that affect people's well-being, whether they are bought and sold in the market or not.
- GDP per head
- GDP per head is the value of a country's gross domestic product divided by the number of people who live there.
Dimensions of the Human Development Index
Can you name the three dimensions of the Human Development Index?
The United Nations index scores three dimensions, each measured by its own indicators.
The health dimension measures a long and healthy life, using life expectancy at birth.
Can you think of an example?
Two countries with the same income per head can score very differently on health if one spends its income on clean water and vaccination and the other does not.
The education dimension measures knowledge, using mean years of schooling for adults and expected years of schooling for children starting school now.
Can you think of an example?
A country that opens schools across its villages soon sees expected years of schooling rise, but mean years for adults rises only as those children grow up.
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.
Can you think of an example?
A haircut costs far less in Delhi than in London. Converting income at purchasing power parity counts what that income buys at local prices.