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The Human Development Index of Indiana Counties – An Exploratory Study
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Srikant Devaraj, Sushil K. Sharma, Michael Hicks, Dagney Faulk
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Ball State University, Indiana, USA
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Keywords (Font size 12, Bold)
Human Development Index (HDI), Human Development (HD), health, education, and living standards. (Font Size 12) (Single space)

Abstract (Font Size 12, Bold)
The Human Development Index (commonly abbreviated HDI) is a measure of development based on factors such as life expectancy, education, literacy, and gross domestic product per capita and is published every year. To compute a HDI, component indices for life expectancy, literacy, school enrollment, and income are combined together into a single index that to date has been used to compare the level of human well-being among countries or to monitor one country's progress over time. This paper extends HDI to the county level, using data from the state of Indiana, USA. The findings provide insights about the human development dimensions in the various counties to assess the development attributes of income, health, and education, as well as to provide a multidimensional benchmark to be used in practice.  

1. Introduction (Font size 12 for headings, Text size 11)

It is important for communities, states, and countries to measure human development. The fast changing new knowledge economy demands that communities assess their human capital for competitive advantage and base their public policies related to health, education, and living standards, accordingly. The availability and quality of human capital in an area ultimately determines economic development opportunities through private investment and migration patterns.

The United Nations Development Report indicates that the human development index (HDI) is becoming significant for measuring economic and social growth among nations and over time (Human development Index report, 2010). The Human Development Index (commonly abbreviated HDI) is a measure of development based on factors such as life expectancy, education, literacy, and gross domestic product per capita. The Human Development Report highlights the concept of “human development” as progress towards greater human well-being, and provides aggregate measures for a wide range of well-being indicators.

The concept of “Human Development” (HD) goes well beyond the Human Development Index (HDI). Human Development has been defined as people having choices for a healthy life, good education, and a decent standard of living. However, HDI alone does not encompass many other important dimensions of HD such as; political freedom, guaranteed human rights, and self-respect' (Ranis, Stewart, and Samman, 2006). Various countries have focused on improving their human development. Porter (1989) mentions that poor quality of human capital in Italy negatively influenced its economic performance. Aahad M. Osman-Cani et al. (1998) concluded that Singapore's remarkable economic development has been due to investment in
 
     
     
     
     
     
 

There are nine UNDP classified human development indicators that are used to measure human development, but for the purpose of the present study, only three indicators; income, health and education indicators in form of HDI index, are used because these three indicators are broad human development indicators predominant in the body of literature.

3. Data and Methodology (Font size 12)

The human development index (HDI) is a combined index of three different dimensions – Health, Education and Living standards , considered important by United Nations Development Program (UNDP) to measure the human development. This index measures level of human development in countries and compare nations in order of their index. This methodology could be applied to find the human development index at a local level (counties) in each of the states of United States.

We have considered all the 92 counties in the state of Indiana, USA for our HDI analysis. An index developed by Anand & Sen (1993), for each of the HDI dimensions and its indicators, were normalized and slightly modified as follows:

This index, expressed as a value between 0 and 100, provides the ith indicator's contribution to the human development index for jth county in Indiana. The higher the ith index for a county, the better the ith indicator is for that county. Since we have taken the geometric mean of dimensions, the county that was ranked last in any one of these dimensions, received a zero for the human development index.


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The health dimension is measured using the life expectancy at birth in 2007 and years of potential life lost data from 2006 to 2008, for each Indiana County. The education dimension is calculated using the enrollment data (9th grade to 12th grade, and college enrollment) and attainment data (population with high school degree or more and college degree or more) in the year 2010. The living standards dimension is evaluated using the per-capita income and average monthly earnings data in 2010. The indexes for these three dimensions (health, education and
 
     
     
     
     
     
 

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The analysis presented in this study is far from being conclusive, but certainly suggests that there are tremendous disparities and inequalities in different counties. Due to fiscal and political pressures over the last several years, state and local governments in the United States have begun to assess their economic and human development growth measures in order to improve social and economic development. The findings of this study provide a measure to help local governments (counties) as well as the state government of Indiana to evaluate the effectiveness and success of their human development efforts. The study may provide information for their development prioritization efforts. The governor and mayors of different counties may gain valuable insight into addressing policy problems.

The study proposes an index, which would be a significant step forward toward assessing the human development at the county level for a number of U.S. states. The results of this study might have been limited due to the kind of data that is available at the county level. As a result of data limitations, we modified the original HDI index indicators, commonly used in national studies, to use the best proxy indicators (two indicators for each dimension), which were available from authentic sources. However, these limitations do not negate the contribution of this study to understand the impact of the human development index for human development in the various Indiana counties.


7. Direction for Future research (Font size 12, Bold)

            Based on the findings of the study, future research may replicate the same model using a different data set. It will be interesting to test the same model using data on other states and counties.  Also, it could be tested to see whether the elderly population and location of colleges in a county has any relationship with the three dimensions of the human development index. Future research may also consider using different indicators of housing, infrastructure and environment, Information Access, wealth, technological diffusion, and environmental quality in addition other indicators to capture the human development construct.


References (Font size 12)
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Alkire, S., 2002. Dimensions of human development.  World Development ,  30 (2), 181-205.
Alkire, S., 2010. Human development: Definitions, critiques, and related concepts . United Nations Development Programme. 2010 (01), 1-74. Available at United Nations website: http://hdr.undp.org/en/reports/global/hdr2010/papers/HDRP_2010_01.pdf [Accessed April 2013]
Anand, S., and A. K. Sen, 1995. Gender inequality in human development: theories and measurement, New York: United Nations Development Programme.
Anand, S., and A. K. Sen., 2000. The income component of the human development index, Journal of Human Development , 1, 1): 83-106. Also, printed in, 1999) mimeo, New York: UNDP Human Development Report Office.
Anand, S., and A. K. Sen., 2003. Concepts of human development and poverty: a multidimensional perspective in Readings in human development: concepts, measures and policies for a development paradigm , eds. S. Fukuda-Parr and A. K. Shiva Kumar, New Delhi: Oxford University Press, pp. 204-220.
Anand, S., & Sen A., 1994. Human Development: Methodology and Measurement. World Bank, New York.
Anand, S., & Sen, A., 1993. Human development index: Methodology and measurement. United Nations Development Programme , Paper No. 8, http://hdr.undp.org/en/media/Anand_and_Sen_HDI.pdf [Accessed May 2013]