Abstract
The HDI has played an influential role in the debate on human development for many years. However, no index is perfect in the HDI. It can be argued that the current HDI does not totally reflect human development performance, and thus proper rankings for some countries. Therefore, this article aims to construct a new composite index for the development performance of a sample of 30 organizations for OECD countries by adding a fourth indicator, namely the employment rate to the calculation of HDI. Including employment factors in HDI as a new indicator has not only made the index more comprehensive but also presented a more suitable dimension for assessing the development performance of countries. By considering these factors, it is hoped that people will get a decent income in order to achieve a level of welfare.
Highlights
During the last twenty years, development has increasingly been defined as human development rather than economic growth, and human development indicators such as life expectancy at birth, school enrolment ratio, literacy rate, gender discrimination, and poverty alleviation have largely been employed to determine and measure the level of development (Wijayanti & Darma, 2019).Until now, normalized measures of life expectancy, literacy, educational attainment, and GDP per capita have considered being the main indicators of human development for all nations
All of longevity index (LEI), enrolment (onethird weight) ratios (EI), GDPI, EMPI, and Human Development Index (HDI) values are obtained from the Human Development Reports (HDR)
For 2019, we provide a histogram of rank changes between the HDI and our proposed HDI-2 in Figure 3, There is no change in rank in 3 countries, 14 countries show a positive change in rank while 13 countries show a negative change in rank, 19 countries show a rank change that is greater than 5 in an absolute value
Summary
Until now, normalized measures of life expectancy, literacy, educational attainment, and GDP per capita have considered being the main indicators of human development for all nations (for example, Wijaya et al, 2021). Each plays a different role in human development and is unified to give a measure named the Human Development Index (HDI). It should be indicated that HDI does not measure absolute levels of human development, but rather it ranks the countries according to the lowest and highest levels of achievement. HDI has been first calculated in the United Nations Development Program’s (UNDP) Human Development Report. Since the first publication of this annual report in 1990, UNDP has been seeking to explore the concept and improve the measurement of global human development.
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