Which component of the HDI is used as a proxy for standard of living?

Which component of the HDI is used as a proxy for standard of living?

• A. GNI per capita at PPP (standard of living)
• B. Life expectancy at birth
• C. Education (mean years of schooling)
• D. Infant mortality rate

Answer: (A)

The standard of living in the HDI is proxied by gross national income per capita at purchasing power parity. This measures the economic resources available to an average person, adjusted for differences in price levels across countries so incomes reflect real purchasing power. The health dimension is captured by life expectancy at birth, which reflects longevity and overall health, while education is measured by mean years of schooling (and, in some formulations, expected years of schooling). Infant mortality rate is a health-related indicator but not the standard of living proxy in the HDI. Using GNI per capita at PPP provides a direct sense of the economic means people have to access goods and services, making it the best choice for representing the standard of living.

The standard of living in the HDI is proxied by gross national income per capita at purchasing power parity. This measures the economic resources available to an average person, adjusted for differences in price levels across countries so incomes reflect real purchasing power. The health dimension is captured by life expectancy at birth, which reflects longevity and overall health, while education is measured by mean years of schooling (and, in some formulations, expected years of schooling). Infant mortality rate is a health-related indicator but not the standard of living proxy in the HDI. Using GNI per capita at PPP provides a direct sense of the economic means people have to access goods and services, making it the best choice for representing the standard of living.