Gender related Development Index (GDI)

UGB, 2018

1. Gender- related Development Index Ketan Das Ashis Mandal Mostafijur Rahaman Selim Saikh

2. The  Gender Related Development Index  ( GDI ) is an  index  designed to measure gender equality. GDI together with the Gender Empowerment Measure (GEM) were introduced in 1995 in the Human Development Report written by the United Nations Development Program. The aim of these measurements was to add a gender-sensitive dimension to the Human Development Index (HDI). The first measurement that they created as a result was the Gender-related Development Index (GDI). The GDI is defined as a "distribution-sensitive measure that accounts for the human development impact of existing gender gaps in the three components of the HDI" (Klasen243). Distribution sensitive means that the GDI takes into account not only the averaged or general level of well-being and wealth within a given country, but focuses also on how this wealth and well-being is distributed between different groups within society.   Introduction

3. GDI also addresses gender-gaps in life expectancy, education, and incomes. It uses an "inequality aversion" penalty, which creates a development score penalty for gender gaps in any of the categories of the Human Development Index which include life expectancy, adult literacy, school enrolment, and logarithmic transformations of per-capita income. In terms of life expectancy, the GDI assumes that women will live an average of five years longer than men. Additionally, in terms of income, the GDI considers income-gaps in terms of actual earned income. The GDI cannot be used independently from the Human Development Index  (HDI) score and so, it cannot be used on its own as an indicator of gender-gaps. Only the gap between the HDI and the GDI can actually be accurately considered; the GDI on its own is not an independent measure of gender-gaps.  

4. Dimension

5. Indicators Maximum Value Minimum Value Female life expectancy at birth (years) 87.5 27.5 Male life expectancy at birth (years) 82.5 22.5 Adult literacy ratio (%) 100 Combined gross enrolment ratio (%) 100 Estimate earned income (PPP US$) 40000 100 Goalposts for calculating GDI (2007-08) Indicators Sex Value Life expectancy at birth (years) 2005 Male 65.3 Female 62.3 Adult literacy rate (% age 15 and older) 1995-2005 Male 47.8 Female 73.4 Combined gross enrolment ratio (%) 2005 Male 60 Female 68 Estimate earned income (PPP US$) 2005 Male 1620 Female 5194 Actual Value for calculating GDI of INDIA (2005)

6. Calculating the GDI 1.Calulating the equally distributed life expectancy index Female: Male: The first step is to calculate separate indices for female and male achievements in life expectancy, using the general formula for dimension indices Next, the female and male indices are combined to create the equally distributed life expectancy index using the general formula for equally distributed indices Female Population shear: 0.483 Life expectancy index: 0.646 Male Population shear: 0.517 Life expectancy index: 0.580 Equally distributed life expectancy index:

7. 2.Calculating the equally distributed education index First, indices for the adult literacy rate and combined gross enrolment ratio are calculated separately for female and male. Calculating these indices each straightforward, since, the indicators used are all ready normalized between 0 and 100 Female Adult literacy: 47.8% Adult literacy index: 0.478 Gross enrolment ration: 60% Gross enrolment index: 0.60 Male Adult literacy: 73.4% Adult literacy index: 0.734 Gross enrolment ration: 68% Gross enrolment index: 0.68 Second, the education index, which gives two-third weight to the adult literacy index and one-third to the gross enrolment index, each computed separately for females and males Education index =2/3(adult literacy index)+1/3(gross enrolment index) Female education index = 2/3(0.478)+1/3(0.60) = 0.318+0.200 = 0.518 Male education index = 2/3(0.734)+1/3(0.680) = 0.489+0.226 = 0.715

8. Finally, the female and male education indices are combined to create the equally distributed education index. Female Population shear: 0.483 Education index: 0.518 Male Population shear: 0.517 Education index: 0.715 Equally distributed education index: 3. Calculating the equally distributed income index First, female and male earned income (PPP US$) are estimated (for details on this calculation see the addendum to this technical note). Then the income index is calculated for each gender. As with the HDI, income is adjusted by taking the logarithm of estimated earned income (PPP US$)

9. Female : Male : Second, the female and male indices are combined to create the equally distributed income index Female Population shear: 0.483 Income index:0.460 Male Population shear: 0.517 Income index:0.659

10. 4. Calculating the GDI Calculating the GDI is straightforward, it is simply the unweighted average of the three component indices-the equally distributed life expectancy index, the equally distributed education index and the equally distributed income index.

11. Scale for indicators of GDI Life Expectancy index Education Index Income Index GDI 0.611 0.619 0.562 0.600

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