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Measuring Inequalities
Dialogue on Inequalities, 21-22 January 2015
Istanbul, Turkey
Mihail Peleah, UNDP IRH Programme Spe...
Frost Report”Social Class”
https://www.youtube.com/watch?v=SfiFTEaz_0U
Measuring Inequalities
• Inequality of what? What inequality(ies)?
• Income inequalities: Gini, Palma, S20/S80,
Bottom 40%...
Gini
Palma~50%
Bottom 40%
0%
5%
10%
15%
20%
25%
30%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Gini vs Palma
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 20% 40% 60% 80% 100%
Country A
Country B
Country C
Perfect eq...
Inequality-adjusted human
development index
What it captures?
• Human Development Index discounted for inequality in each ...
Human Opportunities Index (HOI)
What it captures?
• Coverage by basic services for children discounted by inequality in ac...
Human Opportunity Index: Education
and Access to water
Social Exclusion Index (SEI)
What it captures?
• Objective and multidimensional measure of social exclusion
• Exclusion as...
Drivers of social exclusion
Specific local conditions
Social exclusion status
Individual characteristics
interact
with
in ...
Different combinations of individual risks, drivers and
local context produce different levels of social exclusion
If you ...
Gender Development Index (GDI)
What it captures?
• Gender gap in human development achievements in three basic
dimensions
...
Central Asia: declining participation of
women
Measuring inequalities (Dialogue on Inequalities)
Measuring inequalities (Dialogue on Inequalities)
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Measuring inequalities (Dialogue on Inequalities)

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How we measure inequality?
Inequality of what? What inequality(ies)?
* Income inequalities: Gini, Palma, S20/S80, Bottom 40%
* Human inequalities --> Inequality-adjusted human development index (IHDI), Human Opportunities Index (HOI), Bottom 40%
Overlapping inequalities --> Social exclusion index (SEI)
Gender Inequalities --> Gender Development Index (GDI)

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Measuring inequalities (Dialogue on Inequalities)

  1. 1. Measuring Inequalities Dialogue on Inequalities, 21-22 January 2015 Istanbul, Turkey Mihail Peleah, UNDP IRH Programme Specialist, Green Economy and Employment mihail.peleah@undp.org
  2. 2. Frost Report”Social Class” https://www.youtube.com/watch?v=SfiFTEaz_0U
  3. 3. Measuring Inequalities • Inequality of what? What inequality(ies)? • Income inequalities: Gini, Palma, S20/S80, Bottom 40% • Human inequalities  Inequality-adjusted human development index (IHDI)  Human Opportunities Index (HOI), Bottom 40% • Overlapping inequalities  Social exclusion index (SEI) • Gender Inequalities  Gender Development Index (GDI)
  4. 4. Gini
  5. 5. Palma~50%
  6. 6. Bottom 40%
  7. 7. 0% 5% 10% 15% 20% 25% 30%
  8. 8. 0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
  9. 9. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
  10. 10. Gini vs Palma 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 20% 40% 60% 80% 100% Country A Country B Country C Perfect equality A B C Gini 0.360 0.360 0.360 Palma 1.647 1.917 4.000 Bottom 40% 17% 24% 4%
  11. 11. Inequality-adjusted human development index What it captures? • Human Development Index discounted for inequality in each dimension: Health, Education, and Living Standards – HDI: index of average achievements in human development dimensions – IHDI: (real) level of human development when the distribution of achievements across people in a society is accounted for Why this is important? • Social inequalities closer correlate with development, than income inequality • Could be adjusted to country requirements (in fact based on Mexico work) What it doesn’t capture? • Intersecting and overlapping inequalities: e.g. sick and low-educated, and low income
  12. 12. Human Opportunities Index (HOI) What it captures? • Coverage by basic services for children discounted by inequality in access for different circumstances – Basic services: education, water, electricity, sanitation, no overcrowding, … – Circumstances: gender, relatives, household head education, wealth, area of residence , … • Simplified: access to basic service for bottom 40% and top 20% Why this is important? • Leveling playing field— your future do not depend on where you come from, how much your family earns, or whether you are male or female. What it doesn’t capture? • Outcomes—access to basic services doesn’t automatically translate to equal outcomes
  13. 13. Human Opportunity Index: Education and Access to water
  14. 14. Social Exclusion Index (SEI) What it captures? • Objective and multidimensional measure of social exclusion • Exclusion as overlapping inequalities—threshold is 9 out of 24 possible deprivations • Three areas of exclusion, 24 indicators – Economic exclusion – Exclusion from social services – Exclusion from civic and political participation Why this is important? • Accumulation of inequalities could lead to social exclusion • Social exclusion status vs Social Exclusion Drivers, Personal Characteristics, Local Conditions  Policy actions • Could be adjusted to country requirements Limitations and drawbacks? • Data voracious, requires separate survey or module in regular survey
  15. 15. Drivers of social exclusion Specific local conditions Social exclusion status Individual characteristics interact with in context of …and result in Structures and institutions; values and behavior patterns; policies Drivers are external factors, influenced by legacies, that either speed up or slow down the process of individual vulnerabilities turning into social exclusion (social exclusion risk factors), like poor education, disability, minority status Predominant industry, single or multiple employment opportunities, local infrastructures, history of violent conflict or environmental disaster of the individual in three dimensions— exclusion from economic life, social services, and civic and social participation Social Exclusion Chain
  16. 16. Different combinations of individual risks, drivers and local context produce different levels of social exclusion If you are young person, with low education, living in village, with single company—you face high risk of exclusion …and secondary education doesn’t help much in these conditions… …while vibrant business environment makes a lot of difference …economic centers offer more opportunities (even with low education) …and much more if you are educated + + + + + +Source: RHDR “Beyond Transition: Toward Inclusive Societies”, 2011
  17. 17. Gender Development Index (GDI) What it captures? • Gender gap in human development achievements in three basic dimensions – HDI: index of average achievements in human development dimensions – GDI: (real) level of human development when the distribution of achievements between genders is accounted for Why this is important? • Gender gap means denied participation in development What it doesn’t capture? • Intersecting and overlapping inequalities • Average gains in one area and loses in another don’t tell full story
  18. 18. Central Asia: declining participation of women

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