Per Capita Income works hand in hand with Human Development, as per Capita Income increases so should the HDI and vice versa. However, many say that per Capita Income should not be included in the Index itself due to the reasoning that although an increase of per Capita income can increase the HDI, a decrease in the HDI does not mean there is a decrease in per Capita income.
A balanced HDI takes into account education as well as life expectancy, both of which are factors which lead to a higher per Capita income. An education and a healthy life mean an increased capability to acquire a job and increase the income per household. However due to lack of access to an education and a healthy life, the per Capita income cannot hope to increase.
A balanced HDI takes into account education as well as life expectancy, both of which are factors which lead to a higher per Capita income. An education and a healthy life mean an increased capability to acquire a job and increase the income per household. However due to lack of access to an education and a healthy life, the per Capita income cannot hope to increase.
*capture provided by undp.org* As we can see here, although Australia has a lower gross national income of 43,560$, the HDI value for them is .939 which is higher than Ireland’s .938 even though Ireland has a higher income of 53,754$.
There are also limits to take into account when looking at per Capita income. When measuring per Capita income, there is a cap placed at $75 thousand. This means that this is not an accurate measure of the HDI because it does not take into account the full value of per Capita income for certain individuals and that the rate for per Capita income is not adjusted properly for low-income families vs. high-income families.
There are also limits to take into account when looking at per Capita income. When measuring per Capita income, there is a cap placed at $75 thousand. This means that this is not an accurate measure of the HDI because it does not take into account the full value of per Capita income for certain individuals and that the rate for per Capita income is not adjusted properly for low-income families vs. high-income families.