Human Development Index

How to calculate human deveIopment index?

How to Calculate HDI

What is HDI?
HDI stands for Human Development Index.

Its a Statistical tool created by the Indian economist Amartya Sen and Pakistani economist Mahbub ul Haq. Later it was remodelled by the United States. This tool is used to measure and compare the social and economic development of a country to the other countries on the basis of three major index.
→ Life expectancy at Birth - Long and Healthy Life
→ Education index - Mean years of schooling and Expected years of schooling
→ Standard of Living - Gross national income per capita.

Formula
Use the formula below to find the HDI of a country
HDI = ³âˆšLEI . EI . II


Step 1:
Calculate LEI
Life Expectency Index (LEI) = LE - 20 / 85 - 20

Step 2:
Calculate EI
Education Index = MYSI + EYSI / 2

Step 3:
Calculate MYSI and EYSI
Mean Years of Schooling Index (MYSI) = MYS / 15

Expected Years of Schooling Index (EYSI) = EYS/18

Step 4:
Calculate II
Income Index (II) = ln(GNIpc) - ln(100) / ln(75,000) - ln(100)
With the derived values of LEI, EI and II, we can find the Human Development Index of a country(HDI)

Example
Lets us calculate the HDI(Human Development Index) of India
Average Indian Life Expectancy - 65
Mean Years of Schooling - 4.4
Expected Years of Schooling - 10.7
Income Index - 5,350

Average Indian Life Expectancy is 65
→ Life Expectency Index (LEI) = LE - 20 / 85 - 20
= 65 - 20/85 - 20
= 45/65
LEI = 0.692

→ Education Index = MYSI + EYSI / 2
Mean Years of Schooling Index
MYSI = MYS / 15
= 4.4 / 15 = 0.293
Expected Years of Schooling Index
EYSI = EYS/18
= 10.7 / 18 = 0.594
So, Education index = 0.29 + 0.59 / 2 = 0.88 / 2 = 0.443
EI = 0.443

→ Income Index (II) = ln(GNIpc) - ln(100) / ln(75,000) - ln(100)
=ln(5,350) - ln(100) / ln(75,000) - ln(100)
= 8.584 - 4.605 / 11.225 - 4.605
= 3.979 / 6.62
II = 0.60115

So, Human Development Index (HDI) of India is
HDI = ³âˆšLEI . EI . II
= ³âˆš0.692 X 0.443 X 0.60115
= ³âˆš 0.184
HDI = 0.56953

Enter the Life Expectancy, Mean Years of Schooling, Expected Years of Schooling and Income Index value to find the HDI of any country by using the simple HDI Calculator.